Romanian Teraplast buys Interlemind factory in Leskovac – EUR 11 million to be invested in development of production of sandwich panels

The Romanian manufacturer of plastic products Teraplast announced on Wednesday, June 7, 2017, that it had bought the Serbian factory Interlemind, which produces sandwich panels, for EUR 4.3 million.

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

The purchased company has a production capacity similar to the one of the subsidiary TeraSteel, meaning 2.2 million m2/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 our forecasts, these markets have in 2017 a potential of 9.6 million m2. The Serbian panel market is evaluated at 2.3 million m2, of which the domestic production represents 20%, the rest being imports. For the sake of comparison, in Romania, the domestic production represents approximately 80% of the total market and we have 9 sandwich panel factories. TeraSteel sells in the foreign markets over 33% of the production made in Romania – says the press release by Teraplast.

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 with the Leskovac factory we aim to exponentially increase the sales in Balkan area, they add.

– 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 in foreign markets. Instead the companies from Poland, Russia or Hungary opened factories in Romania and they are really active in the constructions area. Following the two acquisitions of this year, Teraplast Group will get to use in 2018 all the production capacities of a medium sheet-metal plant, meaning over 70,000 tons, worth over EUR 55 million – said Dorel Goia, Chairman of the Board of Directors of Teraplast.

Teraplast Group includes the company Teraplast (producer of pipes, compounds and PVC profile), subsidiary TeraSteel (producer of sandwich panels and galvanized structures), subsidiary TeraGlass (producer of PVC windows and doors), subsidiary Teraplast Logistic (starting with June 2016 it includes the logistic activities of Teraplast Group) and Politub (producer of polyethylene pipes).

The Romanian company estimates for 2017 a consolidated turnover of 434.6 million lei (around 94 million euros) and a net profit of 38.1 million lei. In the first three months of 2017, Teraplast Group obtained a turnover of 66.5 million lei and a net profit of 1.6 million lei, the press release adds.

Interlemind a.d. Leskovac

TeraSteel d.o.o. Leskovac

Interlemind Leskovac

Teraplast

sandwich panels

TeraSteel

Interlemind sandwich panel factory

Teraplast Group

Dorel Goia

PVC

galvanized structures

TeraGlass

Teraplast Logistics

Politub

sale of Interlemind