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BUCHAREST (Romania), May 19 (SeeNews) - Romanian plastics manufacturer TeraPlast [BVB:TRP] said on Thursday it plans to start the construction of a new stretch film production unit this year, following a 11.2 million euro ($11.75 million) investment co-financed with state-aid.

Located within TeraPlast's industrial park in Saratel, Bistrita-Nasaud county, the facility will have two production lines for polyethylene films for industrial use with a total capacity of over 14,000 tonnes per year, the company said in a statement submitted to the Bucharest Stock Exchange, BVB.

The investment is expected to generate 4 million euro EBITDA and a turnover of 28 million euro, equating to a 14% margin.

The funding was allocated to TeraPlast through an incentive mechanism for investments with great impact on the economy, which covers 50% of the project's eligible costs.

TeraPlast is the parent company of the TeraPlast group, which also includes TeraPlast, TeraGlass, TeraPlast Recycling, TeraBioPack, and Somplast.

Its net profit fell to 6.8 million lei ($1.44 million/1.37 million euro) in the first quarter of 2022, from 11.65 million lei in the like period a year earlier.

TeraPlast Group booked consolidated profits of 42.29 million lei in 2021, compared to 29.70 million lei in 2020, according to a previous bourse filing. The group also posted a turnover of 615 million lei in 2021, up from 396.18 million lei in the previous year.

In the last three years, TeraPlast Group has made investments of 44.4 million euro co-financed by the state aid scheme.

TeraPlast's shares 1.66% lower at 0.6510 lei/share at 12:39 CET on Thursday, on the BVB.

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