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BUCHAREST (Romania), March 13 (SeeNews) - The exports of TeraSteel, the sandwich panels division of Romania's TeraPlast Group [BSE:TRP], rose by 53.7% year-on-year in 2018 on the back of the company's expansion on the Serbian market, TeraSteel said on Wednesday.
TeraSteel recorded a double-digit sales growth in all product categories in 2018, the company said in an e-mailed statement.
Sales volume of sandwich panels increased by over 54% compared with 2017, sales of galvanized profiles rose by 25%, while sales of turnkey industrial halls, logistic spaces and warehouses grew by more than 15%.
"Increased production capacity, a bigger product portfolio and the expansion on the Serbian market have made a decisive contribution to the company's favourable year-to-year development, and the best proof are the 2018 results. Our expertise in the field and dedicated team of professionals were the engines of success in 2018 and will continue to support our ambitious development plans in the coming years," TeraSteel CEO Cosmin Patroiu said.
In 2018, the sandwich panel market was heavily influenced by the dynamics of the civil and industrial construction sector, and the company is relying on an increase in this segment during the next period.
"For Romania, we expect an increase of 3-5% in the panel market, while the growth rate for Serbia is estimated at 10%. Through our presence in Serbia we have consolidated our position on regional markets and in 2019 we intend to continue with the expansion of the distribution network," the CEO added.
For 2019, TeraSteel aims to expand its business by more than 15% on the back of investments in the industry, new product launches and foreign investment growth, which will generate a greater demand for its products.
In 2017, the company expanded its presence on the regional markets through TeraSteel Serbia, the first factory opened abroad after 1990 and wholly owned by a Romanian private enterprise. Following its expansion to Serbia, TeraSteel has become an important player in the region's panel markets, exporting to over 25 countries in Central and South Eastern Europe.
TeraSteel Romania and TeraSteel Serbia are part of the TeraPlast Group's Steel Division, together with Depaco. Last year, the Steel Division was the main contributor to the positive development of the group's financial results.
The Steel Division’s sales increased by 181% year-on-year in 2018, reaching more than 483 million lei ($115 million/101 million euro), while EBITDA rose by 120% during the same period - to 41.3 million lei, TeraPlast Group, the biggest Romanian-owned producer of construction materials, said last month, citing preliminary financial results.
TeraPlast's shares traded 0.78% lower at 0.2530 lei on the Bucharest Stock Exchange as of 1211 CET on Wednesday.
(1 euro = 4.7632 euro)