TeraPlast Group announces the closing of the transaction for the sale of the steel products division to Kingspan Group. On February 26, the shares of TeraPlast in TeraSteel Romania and Serbia, respectively Wetterbest, were transferred to Kingspan, at which point the transaction price of 373 million RON was paid.
Following the sale, TeraPlast Group shall be redimensioned and continues its activity through TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast, with a strong focus on the plastics products.
“After 2020, which was another record-breaking year in the history of TeraPlast Group, finalizing this transaction is another good news which we bring to our shareholders. We have the financial resources to finance our growth plans as well as to pay a special dividend to our shareholders. We are working relentlessly to implement the investments co-financed by the state aid scheme. One of the new lines is already producing and all production lines will be running by the end of September. We are investing this year RON 165 million in TeraPlast and Somplast. Practically, we’re investing 25% of the budgeted turnover for 2021 and we’re generating 200 additional workplaces. If all companies from Romania would follow suite, it would mean investments of RON 445 billion in the Romanian economy. We could reach Poland at that pace, in terms of economic performance. With these investments and a minimum of two acquisitions that we are planning, we will compensate the turnover and EBITDA of the businesses that we sold” stated Alexandru Stanean, TeraPlast’s CEO.