Teraplast up 46% prior to stock exchange listing

Teraplast Bistrita, maker of PVC products, is being audited in preparation for listing on the Bucharest Stock Exchange (BVB) by the end of 2007.

Teraplast posted a 46 percent year-on-year increase in net sales in the first quarter of 2007, exceeding €25 million. The company’s profit rose by an annual 52 percent in Q1 2007, up to €2.7 mln. Of the company’s entire turnover, €1.5 mln come from exports. “Main growth rates came from PVC tubes, PP [polypropylene] and fittings,” Ioana Pop, Marketing Manager of Teraplast, told Business Standard. 

The company’s growth is based on investments budgeted for this year. “The 2007 investment budget amounts to €9 million, and €28 million have been allocated to the development program by 2010,” Ioana Pop added. The development strategy includes relocating a part of the Teraplast company somewhere outside the city of Bistrita. The company also intends to increase its market share in 2007. Teraplast estimated a 34 percent increase in net sales by the end of this year, up to €57.7 million, compared to €42.8 million registered in 2006

The company is leader on the plastic tube market, where it has registered its highest growth rates. The value of this market is estimated at €100 million and is expected to increase by some 30 percent in 2007. Players on this market estimate the value of the market will increase constantly in the coming 10 years, considering the necessary work in Romania’s infrastructure. 

Teraplast’s main competitors on this market are Rehau Polymer, Romstal and Palplast Sibiu, the latter, a member of the Rompetrol group, the second-largest player on the Romanian oil market. Teraplast is present on the thermoinsulating window market as well, which is estimated to be worth €1 bln. The company targets €7.5 million in net sales on this market segment by the end of 2007, which translates to a 150 percent increase. Teraplast main competitors are Gealan, Rehau, and Aplast.