Romanian construction materials manufacturer TeraPlast has agreed to acquire Brikston Construction Solutions’ polyethylene (PT) films production assets in Transylvania.
Credit: TeraPlast
“The deal is a necessary step to reach our objective of becoming leaders in the flexible packaging market in Romania. We already are present in this market and this acquisition strengthens our position and capacity of offering Romanian products on an import-dominated market," TeraPlast CEO Alexandru Stânean said.
The acquisition of Brikston’s assets is part of TeraPlast’s expansion strategy on the flexible packaging market, addressing the industrial segment.
As there are no biodegradable polymer solutions in this market yet, the Group has been implementing the TeraBio Pack project, a €12 million investment, co-financed through the state aid scheme.
The aim of the project is to build a biodegradable films production unit to serve the €300 million worth of flexible packaging market on which TeraPlast aims to become a leader.
TeraPlast Group aims to implement investment projects worth a total of €32m this year.
Stânean said: “From the beginning of the year, we have promised that the group’s development shall also be made by acquiring businesses in our interest area. The acquisition of Brikston’s assets is another step in this direction. These assets add 1,200t a year to the current production capacity for industrial polyethylene packaging and 300 tonnes a year for films recycling.”
In 2020, despite the pandemic, TeraPlast achieved a double-digit increase in sales.
In the first half of this year, the company reported a 40% increase in its turnover and a 47% rise in earnings before interest, tax, depreciation and amortisation. The group also reported a 71% increase in net profit across all its companies.
According to Alexandru Stânean, the Group will continue to have the largest PVC processing capacity in Eastern Europe.
"Through the investments that we are implementing, we will become market leaders in 2022 in the production of polyethylene pipes and flexible packaging,” he said.
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