TeraPlast Group marks ten years of listing on BVB, has tripled its market value ever since

TeraPlast Group, one of the main players in the construction market, has tripled its market value in the past 10 years since it’s been listed on the Bucharest Stock Exchange (BVB). The shares of TerPlast Group have been first listed on BVB on July 2, 2008.

„The listing on BVB has been a natural step of a large company as TeraPlast. Although the listing  a leader company on a market is normal in Western Europe, it was a novelty for Romania at that time,” said Dorel Goia, President TeraPlast at the official opening of the trading session dedicated to the anniversary of a decade since the listing of TeraPlast on the Main Market of BVB on Thursday.

Lucian Anghel, President Bucharest Stock Exchange stated that TeraPlast is a regional leading company and he hopes its successful story will be followed by other investors, too. „We appreciate the managers and the shareholders of the companies that are accessing the tools provided by the capital market as much as possible to make their business more attractive and competitive. TeraPlast listing on BVB offered them the advantage to secure the very good employees loyalty and also brought consistent dividend revenues. It’s a success business story, we want as many listed companies as possible,” Anghel said. Dividend revenues have mounted to over RON 27 million in the past three years.

During this decade, the group has been constantly investing in developing the production  capacities, in the cutting-edge technology and in extending the product portfolio, while a focus has been also on exports. TeraPlast is currently exporting in over 20 countries in Europe. In October last year, the group acquired a plant in Serbia, which became TeraSteel Serbia, being the first Romanian factory commissioned abroad after 1990.

Through TeraPlast  initial public offer (IPO), EUR 14 million has been redirected to the relocation of the production premises, which were at four different locations at that time, to a 20-ha industrial park. At the same time, a distribution point has been set up in Hungary and the group has also made two acquisitions in Romania: Politub and Depaco in the autumn of last year.

Recently, the group has invested EUR.4 million in turning a raw material warehouse into a station of recycling and collecting plastics. The unit has a production capacity of 12,000 tons per year, putting TeraPlast among the top ten recyclers in Europe.

However, the plastics recycling unit move comes after the group has filed for a EUR 13 M state aid last year, but it was denied. „We have filed for EU funds successfully, but it was not enough. Now, we regret, as we are a large company and we don’t have access to European funds anymore. We also tried to obtain a state aid last year. We asked for EUR 13 million for a plastics recycling project, being the first such request made by Romania so far. We have been turned down, they prefer to grant the money to a large multinational company. Now we are ready to submit another file,” Goia explained, adding that they preferred to enforce the project anyhow and invested their own money in the first part of the project and they would still require another EUR 4-5 million to further develop it.

During 2008-2017 TeraPlast Group has made total investments worth RON 323 million, has paid salaries of RON 314 million and has posted a profit of RON 108 million, while the taxes paid to the state have mounted to over RON 400 million.

Last year, the group has reported a turnover of RON 422 M, while the value of the investments carried out in 2017 exceeded RON 112 M. For this year, TeraPlast aims a turnover of RON of EUR 970 M, after last year has massively invested in the major above-mentioned  acquisitions.

„Our goal is to prove our investors that we are a solid, trustworthy company and of course, to continue developing the companies within the group, by increasing the market shares. I consider that, to continue the upward trend of the group, predictability and mutual trust are needed. This is our main focus, along with the vow to provide efficient solutions for people and environment, through sustainable products,” Dorel Goia added.

The TeraPlast president admitted the biggest challenges of the activity in Romania remain the lack of infrastructure and the lack of skilled labour amid disbandment of the vocational schools and the low level of practice across specialized technical universities in our country.