The financing of the TeraPlast Group, the largest producer of building materials with Romanian capital, from the European Bank for Reconstruction and Development (EBRD), reaches the sum of 16 million euro. The investment targets the Steel Division of the Group in order to develop the production units and increase the regional presence and will be carried out during this year and the next.
„The 16 million euro that the TeraPlast Group will receive from EBRD have three components. One part, namely 5 million euro, goes to Depaco for the partial financing of a project to expand production capacities. Another 5 million targets TeraSteel Serbia, for the return of part of the loan received from TeraPlast at its establishment. TeraPlast also decided to increase the share capital of TeraSteel Serbia by 1.7 million euro. The third component, worth 6 million euro, has the same objective of developing the production capacities and the regional position of the Steel division. TeraSteel exports reach over 25 countries, and in 2018 it went up close to 30 million. We are active in a growing market, and TeraSteel already has a trusted partner position at the regional level. The EBRD agreement is a vote of confidence for our efforts to increase our market competitiveness and the potential of the TeraPlast Group,” said Dorel Goia, Chairman of the Board of Directors of TeraPlast.
The Depaco project, co-financed by state aid, involves the development of a new production unit: new production, storage and production facilities. The production unit to be developed under the project will be built in a new location and will have a cumulative annual production of over 10 million square meters of tile and profiles.
Inaugurated in 2017, TeraSteel Serbia, the first Romanian private capital production unit opened after 1990, has quickly become, together with TeraSteel Romania, an important exporter in Southeast Europe. The total investment in this production unit, from its inception to the present, amounts to more than 6.5 million euro. Of these, more than 1 million represent the investment in the thermal insulation panel with mineral wool and the self-supporting panel line, opened in 2018. The production capacity of the plant in Serbia is comparable to that in Romania – about 2.2 millions of square meters of panels each year.
One of the main strategic components of the TeraPlast Group for 2019 is the development of the Steel division, and EBRD’s funding will contribute to the first steps in this direction.