Barrier, PVC window and door manufacturer gets EUR 3 million state aid

The funds will be used to expand the production capacity of the factory in Bacau. Total investment exceeds €6.5 million.

Barrier, a Romanian PVC window and door manufacturers, has completed its investment in the expansion of the production capacity of its factory in Bacau, after obtaining the full non-reimbursable financing of over 3 million euros through the state aid regulated by GD 807/2014 and managed by the Ministry of Finance. The project was successfully coordinated by the REI team, a group of companies specialized in attracting non-reimbursable financing, among the largest consulting companies in Romania.

Barrier submitted the funding project for non-reimbursable support in mid-2021, and during June this year it received the last tranche of funding, which will allow it to successfully cover the investment plan to expand the PVC window and door manufacturing capacity of the Bacau plant.

The total investment in the expansion of production capacity amounts to more than €6.5 million and is aimed at developing and increasing production output through the purchase of high-performance, energy-efficient machinery that will ensure a higher production flow.

Investing in the expansion of production capacity was a natural step, which will help us to continue Barrier’s development both locally and internationally. We accessed a grant of over €3 million with the support of REI, which has always responded promptly to our requests and those from the authorities. This experience, combined with our future plans, makes us confident that we will be able to attract further grants to help us develop the production of aluminium windows and facade elements, as well as the refurbishment of the glass factory”, Adrian Garmacea, Managing Director at Barrier stated.

Following the completion of the investment and the attraction of the grant applied for, Barrier expects revenues of over €11 million from the new project contribution alone, while the estimated turnover for this year – the consolidated value of the business – would amount to over €40 million.

A total of 100 new employees have already been recruited in the new production facility in Bacau and another 100 employees will be added in the next two years.

The production of building materials has been one of the most active sectors in terms of State aid investments over the last few years. This was due to an increase in market demand, but also to a growing appetite for investment from Romanian and international companies. We are glad to see more and more companies open to the alternative financing solutions offered by the Romanian Government, especially as state aid is the only one that can be accessed by large companies, as European funds are mainly intended for SMEs”, Roxana Mircea, Managing Partner of REI Grup added.

The scheme governed by GD 807/2014, for which Barrier successfully applied, coordinated by the Ministry of Finance, was one of the best investment support measures, which over time has undergone many changes and improvements, but was part of the previous 2014-2020 funding programme. It was replaced last year by GD 959/2022, which targeted support for manufacturing industries and was coordinated by the Ministry of Economy, but its budget was exhausted very quickly in the first session – only €150 million was available.

The government has announced that it will prepare new support measures for companies interested in investing in development, so, towards the end of this year, a financing scheme dedicated exclusively to the production of construction materials should be launched on the market, with a budget that could exceed 150 million euros.

In addition, the scheme governed by GD 959/2022, which supports investments in manufacturing industries, would benefit from an annual budget of about 500 million euros from 2024, according to proposals considered by the Ministry of Economy, which would considerably increase the interest of companies to invest.

We look forward with great interest to the Government’s decisions on the two major funding schemes – the one for the construction materials manufacturing sector and the one for the manufacturing industries – and we are confident that the necessary resources will be found to successfully coordinate these support measures. We receive daily requests from companies for development investments, which shows us that interest is very high. So far, we have been able to successfully attract projects worth over 500 million euros, most of which have an investment component, while most of our clients are companies active in the production of construction materials”, Roxana Mircea also added.

barrierdoorexpansionfactoryproductionPVC windowREIstate aid
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