Romanian construction materials group TeraPlast Group announced that it received a state grant worth 50% of the eligible expenditures related to the construction of a stretch film production unit estimated to cost EUR 11.2 mln.

The construction of the new factory will start this year. The facility will have two production lines for polyethylene films for industrial use, which represents a capacity of over 14,000 tonnes per year.

At maturity, the investment will generate a turnover of EUR 28 mln and an EBITDA of EUR 4 mln, corresponding to a margin of 14%, similar to that of other segments within the Group.

Under the state aid scheme, the beneficiary undertakes to contribute to the consolidated general budget at least equal to the amount of state aid received within five years of the completion of the investment. For the rest of the money, TeraPlast Group will borrow from Raiffeisen Bank.

In the last three years, TeraPlast Group has made investments of EUR 44.4 mln co-financed by the state aid scheme.

andrei@romania-insider.com

(Photo source: the company)