On June 23rd 2021, Promateris held a press conference marking the completion of a new round of investments in the Buftea factory, in the total amount of 2.5 million euro.
On June 23rd 2021, Promateris held a press conference marking the completion of a new round of investments in the Buftea factory, in the total amount of 2.5 million euro. The capital, which was invested in the development of a production line of compostable packaging, will contribute to growing Promateris individual turnover by 53% between 2019 and 2021. Moreover, following the implementation of this project, 39 new jobs were created in Buftea, Ilfov County. The investment was co-financed by a grant of EUR 950.000 provided by Iceland, Liechtenstein and Norway through the EEA and Norwegian Financial Mechanism 2014-2021, within the “SMEs Growth Romania” program.
“Our ambition for Promateris is to become the largest European producer of bio-based and compostable bags, sitting at the forefront of green transformation in the EU. We are thrilled to announce the completion of this round of investments in our Buftea factory. Between 2018 and 2021, Promateris has invested over 10 million euros in bio-based packaging and we do not plan to stop here. Our goal is to invest additional 15 million euro over the next 5 years in projects that respect the principles of the Green Deal launched by the European Union. We are motivated to not only grow our business, but more importantly to continue generating a positive effect on the local economy, creating new jobs, but also contributing to the decarbonization of the Romanian industrial sector,” stated Tudor Georgescu, CEO at Promateris.
Under the Green Europe project, Promateris signed a partnership agreement with the Norwegian company BioBag, in order to transfer knowledge and export compostable products made in Romania to Scandinavia. Apart from generating turnover increase in excess of 9 million euro between 2019 and 2021, the project implemented with the help of Innovation Norway, facilitated the transition of Promateris' decarbonization and the production of low carbon footprint packaging. Promateris installed a technological waste recycling line, whichi recycled within the dirst year 1131 tones of technological watse. . Consequently, as of 2021, Promateris recycles 100% of the waste thatit generates. Moreover, since 2018, the company reduced its polyethylene production by 99%.
In the first quarter of 2021, Promateris owas awarded a second grant from Innovation Norway in the amount of 744,000 euros through the same financing scheme. The aim of the project is to produce biodegradable and compostable raw material, based on corn starch, in the factory in Buftea. Corn starch products have a low environmental impact compared to plastic packaging and in the context of the European Green Deal, are currently in high demand. Once implemented, Promateris will become the first company in Eastern Europe to produce raw material based on corn starch.
In the first quarter of 2021, Promateris Group, which also includes results of subsidiary, Biodeck, reached consolidated turnover of 35 million lei, a 23% increase compared to the same period of last year. The growth has been largely attributed to the development of the bio-based and compostable products, but also the development of the customer network in Romania and abroad, that includes the largest supermarket chains. Consequently, Promateris reached EBITDA of 4.6 million lei, 7% increase compared to 2019. Promateris targets turnover of 250 million lei in 2025, with a forecasted EBITDA of 35 million lei.
Promateris Group has ended the first quarter of 2021 with EUR 7.1 million in consolidated sales, a growth of 23% compared to the same period of last year. Such growth is mainly a result of an expanding portfolio of bio-based and compostable products, as well as an ever-developing network of clients.
Promateris has initiated an investment project of a new division, Bio Compounds, which aims to locally manufacture raw materials from partially renewable resources, used in the production of compostable packaging.
The Promateris Group closes 2020 with EUR 23.7 million in consolidated sales, an increase of 39% compared to the previous year. The growth is largely generated by the increase in production of biodegradable and compostable packaging. Promateris thus strengthens its position as a regional leader by developing distribution channels in Central and Eastern Europe, in countries such as Greece, Poland, Hungary.