Romanian construction materials producer Teraplast Group paid RON 4.9 million (EUR 1 mln) for the controlling stake in flexible packaging producer Somplast Nasaud and received state grants for two investment projects.

The group has ongoing investments worth EUR 32 million. Three of these investment projects will be partly financed with state grants.

"We decided to purchase Somplast because it is already present on the foil market, which we will enter in 2021 with the investment made at TeraPlast Folii Biodegradabile," said TeraPlast CEO Alexandru Stanean.

TeraPlast purchased 70% in Somplast, which owns 20,000 sqm of production halls, of which it uses only 25%. In addition to the products it manufactures, the company is also an authorized recycler of polyethylene products.

Separately from taking over Somplast, TeraPlast announced that its application for a EUR 5.8 million state aid aimed at partly financing a EUR 12 mln investment project, filed by its division TeraPlast Folii Biodegradabile, has been approved.

The two projects should complement each other.

"The integration of Somplast after the receipt of the Competition Council's approvals will create a series of synergies regarding the raw materials supply and the use of the production capacities more efficiently," explained Stanean.

TeraPlast Group also received the state financing agreement for the third investment project. The project is worth EUR 10 million in total, and the state aid accounts for EUR 4.9 million.

The project implies constructing a new factory in the TeraPlast Industrial Park in Saratel village, Bistrita-Nasaud county, and acquiring state-of-the-art equipment. The new factory will produce polyethylene systems for water, irrigation, and natural gas. The project will be completed in February 2022 and will create 80 new jobs.

(Photo courtesy of the company)

andrei@romania-insider.com