In the midst of financial crisis, the market leader in PVC extrusion, Teraplast Bistrita will ensure its business growth through infrastructure and non-residential projects, considering expanding in the neighboring countries such as Ukraine, Bulgaria, Serbia or Belarus.
“Real estate crisis is here, a reassessment of prices is inevitable. I am forced to proceed with a regional expansion. Since 2007 we had a serious approach on external market, but for now, we are analyzing all options to enter other fields that might be suitable for us,” said Florin Urite, managing director at Teraplast. At present, the company exports 7% of its production in other countries like Moldova.
The financial crisis affected the residential construction market in Romania, which geared a skyrocketing growth of Teraplast’s turnover in first part this year, together the visible presence of the group in the sewage projects.
The group reported a consolidated turnover of 202.76 million lei in first nine months this year, up 27% from last year, while after-tax earning increased by 36.6% in the aforementioned period, up to 20.69 million lei.
Teraplast’s sales of pipe, PVC profile, windows and granules, surged 13.54% in first nine months this year, to 153.7 million lei, below last year’s growth margin of 38.15%. After –tax earning upped by 10.06% up to 15.6 million lei.
PVC pipes sales had a 24.29% share in the consolidated turnover, registering a 37.5% growth from a year ago, above the growth rate of construction industry.
“Next year, I will rely on infrastructure and non-residential projects. I see a sharp decline of the real estate market,” said Urite, pointing out that the number of newly built housing units in Romania is far from the level of the countries in the region.
According to the company’s research, the precarious state of infrastructure in Romani
