Bucharest-listed TeraPlast Group, the largest polymer processor in Southeast Europe, continues its geographical expansion in Europe and acquires the assets for PVC and PE pipes production held by Wavin Hungary (Orbia’s Building and Infrastructure business). The acquisition will be made by Polytech Kft, a subsidiary of TeraPlast.
This transaction aligns with Orbia B&I’s strategic decision to streamline its operations on the Hungarian market, to reduce complexity and focus on leveraging core strengths across Europe.
The value of the transaction is of EUR 7.04 million and comprises of close to 12.000 sqm of buildings and more than 40.000 sqm of industrial land located in Zsámbék, 30 km west of Budapest. The equipment acquired as part of the transaction have an annual production capacity of 12,000 tons of pipes.
“Our strategy has always been to be market leaders in every market where we operate. From the beginning, our plan included developing a PVC pipe factory in Hungary. While our initial approach focused on a greenfield investment, the agreement with Wavin allows us to expedite the start of the production. The Zsámbék facility positions us to achieve market leadership in Hungary and efficiently serve foreign markets such as Slovakia, the Czech Republic, Austria, Poland, Switzerland, Germany and countries in western Balkans. Our objective is to increase our sales in western Europe, and this acquisition allows us to offset the disadvantage of a poor road infrastructure, reducing transportation costs and delivery time. We have western quality and eastern prices, which is why we are confident that we will be successful” stated Mr. Dorel Goia, Chairman of the TeraPlast Board of Directors.
In Hungary, TeraPlast Group operates two factories – Polytech and Pro-Moulding. The assets acquired from Wavin diversify the product range in Hungary by PVC pipes production. These will add to increasing the geographical footprint of TeraPlast Group in Europe, respectively to increasing sales outside Romania which at present represent 25% of the consolidated turnover.
The transaction will close in two steps, once several preconditions have been met. Polytech is expected to commence the operation of the factory in the second quarter of next year.
Since July 2, 2008, TeraPlast SA has been listed on the Bucharest Stock Exchange under the TRP symbol. The company’s shares are included in the BET reference index of the Bucharest Stock Exchange, as well as in the Small Cap and Global All Cap indices of FTSE Russell, and the MSCI Frontier IMI (Investable Market Index).
TeraPlast Group comprises of TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack, Palplast Moldova, Wolfgang Freiler Group companies, Optiplast and Somplast.
The Group turned to a net loss of 7 million lei in the first nine months of 2024, from a net profit of 6.8 million lei in the same period a year ago. Consolidated turnover grew by an annual 32% to 681.2 million lei. Teraplast Group’s sales outside Romania contributed to 25.3% of its consolidated turnover in the period under review.
TeraPlast at a Glance
Founded: 1990 Headquarters: Bistrita, Romania Turnover: 428 mln LEI (H1 2024) EBITDA: 26.9 mln LEI Net profit:-6.6 mln LEI
