TeraPlast Group received the financing agreement for the investment project worth 7.9 million Euro

TeraPlast Group, the largest Romanian construction materials producer, received the financing agreement for the first project submitted within the state aid scheme in 2020. The project, named „Increasing TeraPlast SA’s competitivity by the acquisition of high-performance equipment and new constructions”, aims at expanding the production capacity of the Installation business line. The total value of the submitted project is 7.9 million Euro out of which 3.9 million Euro represents the approved state aid.

“The Ministry of Finance understood the importance of supporting the projects that eliminate the imports and equilibrate the trade balance. The program announced by the Government provides funds for infrastructure works, thus we will be working at a fast pace for another 15 years. However, if the Romanian producers do not invest in increasing their production capacities, instead of eliminating the imports, they will be rising. By this investment, besides the infrastructure market, TeraPlast will also address other segments of the installation sector where at present 90% of the products are being imported,” said Ovidiu Gurau, TeraPlast’s commercial director.

This project is the first of the over 20 million Euro worth of investment projects announced by TeraPlast Group in September 2020. The implementation of the project started after the submission of the project and its completion is estimated for April 2022. The investment will create 45 new jobs. TeraPlast Group has another investment project submitted within the state aid scheme for which it expects the financing agreement. The project aims at producing biodegradable packaging through its subsidiary TeraPlast Folii Biodegradabile SRL. The total value of the project is 11.8 million Euro, out of which 5.8 million Euro represents the state aid requested.