New insulation panel deal in eastern Europe

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Romania’s top PVC processor and leading construction component producer Teraplast S.A. has extended its operations into Serbia through the acquisition of the assets of a local manufacturer of composite sandwich insulating panels.

Teraplast group, based in Bistrita, northern Romania, is reported to have paid €4.3m to acquire the Interlemind production plant and equipment at Leskovac in southern Serbia from bankruptcy.

The buyer, which operates a panels making offshoot, TeraSteel, said it is investing €11m in Serbia this year, including the plant purchase. The overall planned spend includes €4m working capital plus 2.7m to develop the new business unit.

Interlemind, formerly owned by a Bulgarian entrepreneur, had a production capacity similar to that of TeraSteel, which can turn out 2.2 million m2/year of sandwich panels, as well as an equivalent machinery park.

“The acquisition is part of the Teraplast Group’s strategy to increase sales and profitability. TeraSteel has been exporting to Serbia, Bulgaria, Montenegro and Slovenia for about two years, and we are planning to exponentially increase sales in the Balkans area through the Leskovac plant,” explained Dorel Goia, Teraplast group chairman.  

Under Teraplast group, Leskovac plant will export sandwich panels to Bulgaria, Macedonia, Bosnia, Croatia and Montenegro as well as serving Serbia itself. In addition, it will supply secondary markets in southern Romania, Hungary and northern Greece, according to the buyer.

Teraplast estimates that around 20% of the current 2.3 million m2 Serbian panel market is supplied by national producers with the rest imported. In contrast, in Romania, local sandwich panel producers are supplying 80% of national demand.

Around a third of all TeraSteel’s sandwich panels output is destined for markets in countries outside Romania.

“The acquisition is part of the Teraplast Group’s strategy to increase sales and profitability,” explained Teraplast board chairman Dorel Goia.

Teraplast group also produces PVC window and door profiles, vinyl windows and doors, polyethylene pipe, fittings and rotational moulded drainage manhole covers, plastics compounds and galvanised metal building components.  

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