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

TeraPlast registered increases for all companies of the group in Q1

TeraPlast Group, one of the main players in the construction market, posted a RON 131 million turnover in the first quarter of 2018, from RON 67 million in Q1 of 2017. According to a press release, the main contributors to this increase were the businesses that joined the group’s portfolio in 2017: Depaco – Wetterbest, the sandwich panel factory in Serbia and the Politub business.

TeraPlast Group includes TeraSteel Romania and TeraSteel Serbia (producers of sandwich panels and galvanized metal structures), TeraPlast (manufacturer of PVC pipes, granules and profiles), Depaco (Wetterbest metal tile manufacturer), TeraGlass (PVC window and door manufacturer) and the distributor TeraPlast Hungary.

Steel Division – TeraSteel Romania, TeraSteel Serbia and Depaco – generated 56 percent of the Group’s turnover in  the first quarter of this year. At the same time, Plastics Division registered a turnover of RON 58 million in Q1 2018, up by 44 percent year-on-year, the contribution of the polyethylene segment (by the Politub brand) in the turnover is RON 5 million.

From the perspective of the TeraPlast Group’s management team, 2018 began as a volatile year, and we do not have any reasons to believe that this volatility will decrease in the next quaters. In these first three months, the competition between manufacturers was primarily on price, as showed by the Group’s EBITDA margin of 6 percent for Q1 2018.

The growth driver of the construction market will continue to be the private sector. For the infrastructure sector, which represents 12 percent of the group’s turnover for the year 2018, there are no clear forecasts.

About Anca Bernovici