TeraPlast Group has submitted a project worth a total of 11.8 million euro under the state aid scheme to stimulate investments with a major impact on the economy, thus entering a new market, at the beginning – the market for biodegradable packaging.

The project was submitted under the name “Establishment of a new production unit for TeraPlast Folii Biodegradabile SRL”. The amount of state aid requested is about 5.8 million euro and represents 49% of the total investment.

The investment project involves both the acquisition of state-of-the-art production equipment and the construction of new halls. The biodegradable sacks and bags that will be produced by the TeraPlast Group company will have a degree of biodegradation of at least 90% and will be certified “OK Compost” according to SR EN 13432, the report shows. The technological flow will also include equipment for recycling waste from own production and reintroducing it into the manufacturing process.

“The packaging market, which we will address, was of 293 million euros in 2019. The segment of biodegradable sacks and bags that is the subject of the investment, represents 22% of the total and registers the fastest growth rate. Local production does not cover the demand, as a result approximately 46% of the total consumption in Romania comes from imports.The granules for biodegradable films that we will manufacture are currently imported entirely from Germany and Italy. By this project, we are entering a new market, which is at the beginning, we are contributing to the reduction of the trade deficit that was in 2019 of 17.28 billion euro and to the alignment of Romania to the obligations it has in the European context. Market demand will continue to grow, as by 2030 all plastic packaging in the EU must be reusable and easily recyclable,” said TeraPlast’s CEO, Alexandru Stânean.

The implementation of the project starts in November 2020, and the estimated duration is of 25 months.