Teraplast, Romania’s leading PVC processor and plastic building components maker is buying out a 50% stake in local plastic pipe and fittings moulder Politub, based in Bistrita from its French partner.
Teraplast has held just half of Politub’s share capital, but agreed in August to buy the 49.99% holding of Socomo-Socotub of Tierecelet in France’s Lorraine region for an undisclosed sum. Teraplast offshoot Terasteel will hold the remaining tiny 0.01% stake in the Bistrita pipe extruding company.
The deal, which is part of Teraplast group’s expansion and development plan, was given the green light from Romania’s anti-trust regulator at the end of September.
Politub, with a 10,000tpa polyethylene pipe plant located at the Teraplast Industrial Park outside Bistrita, extrudes medium and high density pipe for water, gas, sewerage and telecoms applications. Its portfolio also includes corrugated PE pipe.
“One of the main reasons for the acquisition was (Teraplast group’s) wish to have better control over the company, to be able to implement decisions much faster in accordance with actual market requirements.
“Another important aspect is the fact that we intend to develop this product segment which is complementary to the rest of the group’s business lines,” explained Teraplast’s chief executive Mrs Mirela Pop.
Later, the CEO stressed that the takeover will allow Teraplast to “offer diversified solutions to our partners”. “Although the factory (Politub) already owns six highly efficient production lines, we will continue to invest in the development of this market segment,” she added.
Teraplast group comprises a range of businesses with a product portfolio from PVC pipes, panels and profiles to PE manholes and tanks, polypropylene pipes and fittings.
The acquisitive Romanian group has been growing rapidly this year with its purchase in June of the Serbian polyurethane sandwich panel Interlemind which is expected to double Teraplast’s panel capacity. The group already makes around 2.2million m2 of sandwich panels per year through its offshoot TeraSteel.
This year, Teraplast has bought another 10% share of Romanian roof tiles manufacturer Depaco, raising its holding to 60% in the business.
In September, group shareholders approved a 14% jump in its 2017 investment budget to €21m due to the several acquisitions it made in the first half of this year.
However, Teraplast saw its 2017 first half net profit fall 59% on the year to €1.71m blaming stagnation in infrastructure investments and to client insolvency. Sales dropped 11% to just over €37m over the six months to June as sales in the infrastructure field halved against the same period 2016.