You have 5 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Romania's TeraPlast Group seeks state aid to co-finance 10.8 mln euro investment

Romania's TeraPlast Group seeks state aid to co-finance 10.8 mln euro investment Teraplast Group

BUCHAREST (Romania), November 24 (SeeNews) - Romanian construction materials manufacturer TeraPlast Group said that it is seeking state aid to co-finance a 10.8 million euro ($12.22 million) investment in a new stretch film factory within its industrial park in Saratel, Bistrita-Nasaud county.

TeraPlast aims to build a factory with two industrial polyethylene film production lines used mainly to pack palletized goods, it said in a statement filled with the Bucharest Stock Exchange on Tuesday.

The new lines will be installed within the Industrial Park in Saratel, and the production capacity will exceed 14,000 tonnes per year.

At maturity, the investment is expected to generate a turnover of 28 million euro and EBITDA of 4 million euro.

"The new investment will bring technological innovation that will contribute to the long-term competitiveness of the group and to the development on new markets," TeraPlast Group CFO Ioana Birta said.

The group will diversify its portfolio of polyethylene films that will be present in the market under the TeraPack brand, with a central place occupied by TeraBio biodegradable products, according to the statement.

TeraPlast Group comprises flagship company TeraPlast SA, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast.

Blue-chip TeraPlast SA's shares traded 0.91% lower at 1.09 lei ($0.2/0.22 euro) as at 1340 CET on Wednesday on the Bucharest Stock Exchange.

(1 euro=4.9491 lei)