Teraplast Group buys Serbian sandwich panel factory for EUR 4 million

Teraplast Group, the largest PVC processor in Romania, acquired Serbian producer of sandwich panels Interlemind for EUR 4.3 million. In 2017, Teraplast Group will invest a total of EUR 11 million in Serbia, with EUR 2.7 million euros going towards development and a working capital of EUR 4 million.

Interlemind has a production capacity similar to that of the TeraSteel subsidiary, namely 2.2 million sq m / year, and the same machines respectively. Serbia’s sandwich panel factory will mainly serve countries such as Serbia, Bulgaria, Macedonia, Bosnia, Croatia and Montenegro, as well as secondary markets such as Hungary, southern Romania and northern Greece. According to company estimates, these markets have a potential of 9.6 million square meters in 2017, or about EUR 153 million. Serbia’s market for squares is estimated at 2.3 million square meters, of which 20 percent is represented by the local production, the difference being imports. By comparison, in Romania, local production represents about 80 percent of the total market and the company has 9 factories of thermal insulating panels. TeraSteel sells over 33 percent of its production in Romania on foreign markets.

Dorel Goia, Chairman of Teraplast’s Board of Directors said: “The acquisition is part of the Teraplast Group’s strategy to increase sales and profitability. TeraSteel has been exporting to Serbia, Bulgaria, Montenegro and Slovenia for about two years, and we are planning to exponentially increase sales in the Balkans area through the Leskovac plant. We are convinced that the Teraplast Group can become an example for Romanian companies that have not yet been brave or have been encouraged to open factories on foreign markets. Instead, firms in Poland, Russia or Hungary have opened factories in Romania and are very active in the construction sector. With the two acquisitions this year, the Teraplast Group will be able to consume the production capacity of an average combination, ie more than 70,000 of the board, worth more than 55 million euros in 2018.”

The Teraplast Group includes Teraplast (a manufacturer of pipes, granules and PVC profiles), a subsidiary of Teraplast (a manufacturer of PVC windows and doors), a Teraplast Logistic subsidiary, TeraSteel (a manufacturer of sandwich panels and galvanized metallic structures), starting with June 2016 Coordinates the Group’s logistics activities) and Politub (a polyethylene pipe maker).

The Teraplast Group has budgeted for the year 2017 a turnover of RON 434.6 million and a net profit of RON 38.1 million. EBITDA estimated in 2017 is RON 63.3 million. In the first three months of 2017 the Teraplast Group achieved a turnover of RON 66.5 million, a net profit of RON 1.6 million and EBITDA of RON 6.6 million.