Romania’s Teraplast goes multinational, bought a sandwich panel plant in Serbia

Teraplast  Group, the  largest  PVC  processor  in  Romania and  one  of  the  leading  manufacturers  of  materials  for construction  and  installation  market,  purchased  Interlemind,  a  Serbian sandwich  panel  producer,  for EUR 4.3 million, a press release informs.

Teraplast will invest this year EUR 11 million in Serbia, amount that includes the value of the plant acquisition, investments of EUR 2.7 million in development and working capital of EUR 4 million.

The  purchased  company  has  a  production  capacity  similar  with  the  one  of  the subsidiary  TeraSteel,  meaning  2.2 million  sqm per year,  and  respectively  the  same  equipment.

The sandwich panels’ factory from Serbia will mainly serve countries like: Serbia, Bulgaria, Macedonia,  Bosnia,  Croatia and  Montenegro, but also secondary markets  like Hungary, South of Romania and North of Greece. According to Teraplast forecasts, these markets have in 2017 a potential of 9.6 million sqm, meaning approximately 15. Serbian panels’ market is valuated to a volume of 2.3 million sqm, of which the domestic production represents 20 percent, the rest being imports.

As compared, the domestic production represents approximately 80 percent of the total market, Romania having 9 sandwich panels’ factories. TeraSteel sells on the foreign markets over 33 percent of the production made in Romania.

“The acquisition in Serbia is part of Teraplast Group strategy of increasing the sales volumes and profitability.  TeraSteel exports in Serbia, Bulgaria, Montenegro and Slovenia since approximately two years ago, and by the Leskovac factory we aim the exponentially increase the sales in Balkan area. We are convinced that Teraplast Group can became an example for the Romanian companies, which until now did not have the  courage or were not encouraged to open factories on the foreign markets. Instead the companies from Poland, Russia or Hungary opened factories in Romania and they are really active on the constructions area,” Dorel Goia, Chairman of the Board of Directors of Teraplast, stated.

According to him, following the two acquisitions of this year, Teraplast Group will get to use in 2018 the all production capacity of a medium sheet-metal plant, meaning over 70,000 tons, or EUR 55 million.

Teraplast Group estimates for 2017 a consolidated turnover of RON 434.6 million and a net profit of RON 38.1 million. The estimated EBITDA value in 2017 is of RON 63.3 million. In the first three months of 2017, Teraplast Group obtained a turnover of RON 66.5 million, a net profit of RON 1.6 million and EBITDA of RON 6.6 million.