Romanian construction materials producer TeraPlast announced that it prepares EUR 20 million to increase and diversify its range of products.

It will finance 52% of the investments from its own resources - but the company will also apply for the state support under the scheme designed to support investments with a major impact on the economy.

The three projects will positively impact Romania's trade balance, as the country currently imports the products TeraPlast wants to start making.

"We are looking forward to the Government launching the program. We trust the state's confidence in local companies," said TeraPlast CEO Alexandru Stanean.

The projects prepared by TeraPlast aim to expand the production capacity for granules, following which it will introduce a new range of granules for biodegradable foils on the Romanian market. The company will also expand the portfolio of pipes and fittings. For these product ranges, imports cover more than 90% of the local demand.

The company will also expand its production capacity for fittings and multilayer PVC pipes and intends to access new markets.

In 2018, TeraPlast Group received state grants for three investment projects implemented by its Wetterbest, TeraPlast, and TeraGlass units. The total value of investments was over EUR 13 mln in expanding the production capacity. For the three projects, the group received a total state aid of about EUR 6.2 mln.

andrei@romania-insider.com

(Photo source: the company)