April 16 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said on Tuesday it will receive 16 million euro ($18 million) in financing from the European Bank for Reconstruction and Development (EBRD).
The financing will go mostly towards the group’s Steel division, with the purpose of developing its production units and increasing its regional presence during this year and next, TeraPlast said in a statement.
Out of the total financing, 5 million euro will be used by roof tile maker Depaco, part of the group, to partially finance a production capacity expansion project.
A further 5 million euro will go towards TeraSteel Serbia, to be used to repay part of a loan received from TeraPlast at its founding.
Some 6 million euro will go towards the development of the Steel division’s production capacity and regional position. The products manufactured by TeraSteel, the group's sandwich panels division, are present in over 25 countries, and in 2018, the company exports reached almost 30 million euro.
"The deal with the EBRD is another vote of confidence in the actions we are taking in order to improve competitiveness and increase the TeraPlast Group’s potential," Dorel Goia, chairman of the board of directors of TeraPlast, said.
At the beginning of the month, TeraPlast created TeraPlast Recycling following the detachment of its recycling business line.
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 expanded abroad in 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 ($5.5 million/4.9 million euro) in 2018.
The company's shares traded 2.04% lower at 0.24 lei as at 1107 CET on Tuesday on the Bucharest Stock Exchange.
($=0.8835 euro)