April 14 (SeeNews) - Romanian plastic construction products manufacturer TeraPlast Group said on Wednesday that its flagship company TeraPlast [BSE:TRP] has received the approval of the country's anti-trust body for the acquisition of a majority stake in local flexible packaging producer Somplast.
With the acquisition of Somplast, 4,000 tonnes of polyethylene production capacities were added to TeraPlast Group, TeraPlast Group said in a press release.
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In addition, TeraPlast acquired 20,000 sq m of halls belonging to Somplast in Nasaud, Bistrita-Nasaud county.
The group announced that it is acquiring a 70% stake in Somplast in December.
TeraPlast Group is also implementing a 12 million euro investment that is co-financed through state aid for the construction of a biodegradable films factory in the Industrial Park of Saratel. Together with the acquisition of Somplast, TeraPlast’s investment in the flexible packaging business so far exceeds 13 million euro.
According to TeraPlast Group, the flexible packaging market in Romania is estimated at 300 million euro, with 47% of represented by imports.
The group aims at replacing the imports in the market by offering products made in Romania and certified at European standards. At the same time, the group aims to become the leader of the Romanian flexible packaging market by 2022. The acquisition is part of the TeraPlast Group’s development strategy alongside planned investments worth over 32 million euro currently being implemented.
TeraPlast is the parent-company of TeraPlast Group, which comprises several business lines: installation, PVC joinery profiles, compounds, thermal insulating panels, windows, doors and metallic tiles. The group's five companies are TeraPlast SA, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast.
TeraPlast's shares traded 0.25% higher at 0.8170 lei ($0.1/ 0.09 euro) as at 1012 CET on Wednesday on the Bucharest Stock Exchange.
($= 0.8165 euro)