Romania's TeraPlast seeks state aid to co-finance 7.9 mln euro investment

TeraPlast plans to use the funds to increase the capacity of its pipes and fittings production line, it said in a press release.

The project is expected to be completed in April 2022 and will create 45 new jobs.

"This project is the first of many that will help us contribute to reducing Romania’s dependency on imports. We will use the same technology and the same raw materials as our competitors in Western Europe. Thus, we will offer products that meet the same quality standards. The state aid is the best instrument by which the state can show its support for Romanian producers," TeraPlast CEO Alexandru Stanean said.

This is the first project of a 20 million euro ($23.7 million) investment programme which is to be co-financed with state aid. The investment programme was announced by TeraPlast's parent group in September.

In 2018, TeraPlast Group received approximately 6.3 million euro in state aid for three investment projects at its companies Wetterbest, TeraPlast and TeraGlass. The total value of the investments was over 13 million euro.

The TeraPlast Group product portfolio comprises several business lines: installation, PVC joinery profiles, compounds, thermal insulating panels, windows, doors and metallic tiles. The group's seven companies are TeraPlast SA [BSE:TRP], TeraSteel Romania and Serbia, Wetterbest, TeraGlass, TeraPlast Recycling and TeraPlast Hungary.

TeraPlast's shares traded 0.25% lower at 0.4010 lei as at 1602CET on Thursday on the Bucharest Stock Exchange.

($=0.8517 euro)