Romania's Teraplast Completes 2.0 Mln Euro Upgrade of Its PVC Factory

"The Romanian market for window PVC profiles generated new opportunities for expansion this year, because, according to our information, the imports value dropped by approximately 54% in the first six month of 2009, leaving place for the local producers. In this context and due to the rise in demand, we decided to invest in increasing the production capacities," Teraplast CEO Florin Urate said in a statement.

He added that besides expanding on the domestic market, Teraplast also targets markets in Central and Eastern Europe and plans to to export 15% of its output in 2010.

The upgraded factory, located in Saratel in northwestern Romania, produces window profiles with four and five insulating chambers and is testing a tool for a new six-chamber system, the company said.

At the beginning of 2009, Teraplast relocated profiles production from the town of Bistrita to Saratel, where the company has developed an industrial park on an area of 220,000 square metres.

It added that company's investment could reach 30.70 million lei ($10.5 million/7.1 million euro) this year, including around 15.75 million lei planned for 2009 and an additional 15 million lei, to be allocated for finalising investments started in 2008.

Teraplast (www.teraplast.ro) is based in the town of Bistrita, in northwestern Romania. Its shares were traded 7.96% down at 0.4510 lei on the Bucharest Stock Exchange by 0921 GMT on Monday.

The company is part of the Teraplast Group, together with plastic pipes manufacturer Politub and thermo-insulating sandwich panel producer Plastsistem, which are not listed on the Bucharest bourse.

(1 euro=4.3045 Romanian lei)