TeraPlast Group received financing agreement for the project in the biodegradable bags segment

TeraPlast Group received the financing agreement for the state aid project submitted by TeraPlast Folii Biodegradabile SRL. The project has a total value of almost 12 million Euro, of which about 5.8 million Euro is state aid.

“The agreement received is further proof that the state supports the development of Romanian companies. In addition to the 93 new jobs we will create, we will bring Romanian products to a market where 46% of consumption comes from imports. Therefore, we will bring value to both the local community and the Romanian economy. We will help to balance the trade balance in a fast-growing area. We would like to see more Romanian companies making such investments, in areas where Romania is a net importer,” said Alexandru Stânean, CEO of TeraPlast.

The investment project implies both the acquisition of state-of-the-art equipment as well as new constructions. The biodegradable bags that the company of the TeraPlast Group will manufacture will have a biodegradation degree of 90 percent and will be “OK Compost” certified as of SR EN 13432. The technical workflow will also include recycling equipment for the waste resulted in the production process and the re-entry of it into production flows. The implementation of the project starts in November 2020 and the estimated time of completion is 25 months. Following the project, 93 new jobs will be created.

At the beginning of October, TeraPlast submitted the first investment project within the state aid scheme for expanding the production capacity of the Installation business line. The total value of the project is 7.9 million Euro. In the first nine months of 2020, TeraPlast Group registered a 14 percent increase in turnover, up to 167.4 million Euro and a 46 percent increase in EBITDA, up to 20.3 million Euro, compared to the first nine months of 2019.