April 2 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said on Tuesday it has created TeraPlast Recycling following the detachment of its recycling business line.
This step resulted from the need to see recycling as an independent business, which the group plans to develop further, TeraPlast said in a press release.
"In Europe, the recycled rigid PVC market in 2018 reached 480,000 tonnes, although only a maximum of 20% of the total rigid PVC waste is recycled. (...) Therefore, TeraPlast Recycling is a solution to one of Europe’s biggest concerns and an initiative through which Romania makes important progress in this field," the chairman of TeraPlast's board of directors, Dorel Goia, said.
The company is the largest rigid PVC recycler in Romania and in top 10 in Europe by its processing capacity of 12,000 tonnes per year.
"We are promoting the importance of rigid PVC recycling, both post-industrial, as well as post-consumer, and we would like our initiative to inspire the Romanian business environment. The transfer of this business line is worth 4.6 million euro ($5.17 million),” Goia added.
Between August 2018 and March 2019, the recycling unit, now TeraPlast Recycling, processed an average of 650 tons of rigid PVC per month. Last year, 54% of the raw material it processed came from Europe, from countries such as the Netherlands, Denmark or Italy, whilst the remaining 46% came from Romania.
The company hopes that the Romanian environment ministry will make it mandatory for the waste collecting companies in the country not to bury the rigid PVC waste but sell it instead.
"For TeraPlast, it is preferable to buy rigid PVC waste from Romania and not pay 2,000 euro for a 20 tonnes transport from Holland," Goia explained.
TeraPlast Group product portfolio is structured on several business lines: Installation, PVC Joinery Profiles, Compounds, Thermal insulating panels, Windows, Doors and Metallic Tiles – by Wetterbest brand.
The group is present on the foreign market since 2017, when it opened TeraSteel Serbia, the first Romanian privately-held production unit outside Romania since 1990.
TeraPlast's consolidated net profit rose by 24% on the year to 23.1 million lei ($5.5 million/4.9 million euro) in 2018.
The company's shares traded 1.65% higher at 0.2460 lei as at 1006 CET on Tuesday on the Bucharest Stock Exchange.
(1 euro=4.7625 lei)