Romanian manufacturer TeraPlast inaugurates polyethylene pipe factory in Spain

Romanian building materials manufacturer TeraPlast Group inaugurated its TeraPlast Iberia polyethylene pipe factory in Spain, strengthening its expansion into Western European markets. The facility, located near Bilbao, is expected to serve customers across Spain, France, and North Africa.

The factory, inaugurated on July 23, is located in Okondo, in Spain's Álava province, about 20 kilometers from Bilbao. It has an annual production capacity of 16,000 tonnes and employs 79 people.

The opening follows TeraPlast's acquisition of the facility and forms part of the group's international expansion strategy after earlier investments in the Republic of Moldova, Hungary, Austria, and Croatia.

“Romanian industry can compete and thrive at European level, and we demonstrate it through actions, not idealistic speeches. Following our expansion into the Republic of Moldova, Hungary, Austria and Croatia, our entry into the Spanish market marks another important step in our international growth strategy,” said Dorel Goia, chairman of the TeraPlast Board of Directors.

The company plans to invest EUR 4 million in the Spanish factory over the next three years to increase production by 60% and achieve an EBITDA margin of more than 10%.

“The expanded production capacity will serve the markets of Spain, France, and North Africa. This will enable us to reduce leverage while generating returns on our investment for the benefit of the group's shareholders," Goia added.

According to the company, the factory has an established customer base in Spain, France, and Germany and will serve as a regional hub for the group's operations in Western Europe.

TeraPlast Group is the largest polymer processor in Southeastern Europe and operates production facilities in Romania, the Republic of Moldova, Hungary, Austria, Croatia, and Spain. Its parent company, TeraPlast SA, is listed on the Bucharest Stock Exchange under the symbol TRP.

irina.marica@romania-insider.com

(Photo source: the company) ...