TeraPlast Group reached a consolidated turnover of RON 590.5 million at nine months

TeraPlast Group, one of the largest manufacturers of building materials in Romania, registered a consolidated turnover of RON 590.5 million in the first nine months of 2018, up 100 percent over sales in the same period of last year.

At the same time, the consolidated EBITDA increased by 60 percent, from RON 32.9 million to RON 52.8 million. Each business line continued its organic growth, a result of the Group’s strategy, which focused on developing the distribution network, increasing its presence on European markets as well as developing new products and customer portfolios for them.

Additionally, EBITDA reached 9 percent versus 8.4 percent in the first six months.

”The results of the first nine months of this year are in line with our strategy to focus on increasing business efficiency and improving the profit margin for all companies, in parallel with the complex integration process the last acquisitions in the Group. In addition, our efforts have been geared towards adjusting supply according to the evolution of the market segments we are addressing, ”said Ioana Birta, financial manager of TeraPlast Group.

The Steel division, consisting of TeraSteel Serbia, TeraSteel Romania and Depaco, generated a notable increase in the first nine months of 2018, with turnover exceeding RON 350 million, more than three times the value of the reference period last year.

Read more about

East European Coffee Culture Festival: brewing excitement this weekend

read more

At the same time, EBITDA of the division exceeded double the value in January-September 2017, reaching RON 31.7 million (+ 120 percent). In terms of constant investment, diversification of product portfolio and sales on foreign markets – currently at 40 percent of total production – the upward trend in the Steel Division will continue in the coming period. The effects of optimization are visible in the performance of all three companies.

Just one year after its inauguration, TeraSteel Serbia recorded a sales volume of over 1 million sqm of polyurethane foam insulated panels and more than 100,000 linear self-supporting self-supporting sheets, totaling over EUR 13 million. The total investment in this production unit is over 6 million euros, the company’s latest investment being the new module for the production of mineral wool thermal insulation panels, the planned production of which is 300,000 sqm in 2019.

At the same time, TeraSteel Romania and TeraSteel Serbia recorded outstanding performance in the first nine months of 2018, producing and delivering over two million square meters of thermal insulation panels.

The Plastics Division, which includes the production of PVC, polyethylene and polypropylene plant systems, heat insulating carpets and PVC granules, recorded in the first nine months of 2018 sales of RON 240.5 million and an EBITDA of RON 21 million, up 33 percent and 14 percent, respectively, compared to the same interval of 2017.

In July 2018, TeraPlast SA launched Clean Water Campaign means life, aiming to bring to the forefront the importance of using quality water transport pipes and the impact that an old and damaged system can have on health.

The Politub PE-100RC pipe is an environmentally friendly solution, and the savings made using this system compared to other similar solutions can reach up to 15 percent. Estimated sales for this system are 6 million linear meters in 2018 (+ 50 percent versus 2017).

The recycling section, the result of an investment of an EUR 3.8 million, places TeraPlast in the top 10 rigid PVC recyclers at European level and is the number one nationwide with an annual processing capacity of 12,000 tons. In September 2018, the recycling section operated at full capacity, processing over 900 tons of rigid PVC.

TeraPlast Group aims to continue its development by investing in September by submitting three projects worth EUR 15 million through the State Aid Scheme for stimulating investments with a major impact on the economy. Investments aim at acquiring machinery and equipment to increase the production capacity of existing products, portfolio diversification and the establishment of new production units within three Group companies – TeraPlast, Depaco and TeraGlass. In the context of approval, projects will create 159 new jobs.