September 5 (SeeNews) - TeraPlast Group's parent company TeraPlast SA [BVB:TRP] said on Monday its shareholders approved the establishment of a limited liability company in Hungary.
The new company in the Berettyoujfalu, Hajdu-Bihar county will increase the regional footprint of the TeraPlast Group and will represent a logistics base for effective coverage of the local market, PVC pipes and fittings manufacturer TeraPlast said in a statement filed with the Bucharest Stock Exchange, BVB.
Hungary has become the main export market of TeraPlast Group, surpassing Germany, the company added.
"Exports continued to grow within the group's business, both in terms of value and weight, and after the first eight months of the year they reached the level of 18 million lei ($3.7 million/ 3.72 million euro), compared to 7 million lei in the same period of the previous year," TeraPlast development director Laszlo Vajda said.
"We support this external activity by opening a warehouse in Hungary, a center that will allow us to better manage and efficiently respond to the demand in this dynamic market."
The group owned a warehouse in Hungary before, specialized in the distribution of window profiles. The facility was part of the sale of the window profiles business line to Dynamic Selling Group in 2021.
TeraPlast Group remains dedicated to its strategy of consolidating its existing businesses and exploring opportunities for expansion and development even in a macroeconomic context with many challenges and uncertainties such as the current one, TeraPlast said in the statement
TeraPlast Group comprises TeraPlast SA, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast.
Blue-chip TeraPlast's shares traded 0.89% lower at 0.5590 lei as at 1002 CET on Monday on the Bucharest Stock Exchange.
(1 euro=4.8344 lei)