Bucharest, 24 June 2021 – Promateris, Romanian industrial group and the leader in the CEE region in the production of compostable and biodegradable packaging, announces 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, which recycled within the dirst year 1131 tons of technological waste. Consequently, as of 2021, Promateris recycles 100% of the waste that it generates. Moreover, since 2018, the company reduced its polyethylene production by 99%.
In the first quarter of 2021, Promateris was 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 (BVB: PPL) is a company listed on the Main Market of the Bucharest Stock Exchange. Promateris specializes in state-of-the-art packaging, made from renewable, biodegradable and compostable materials. In the Buftea factory, the company produces sustainable alternatives to single use plastic such as a wide range of bags for retail (T-shirt bags, fruit and vegetable bags, bio-waste bin liners). Promateris operates three business lines: Bio-based and compostable packaging, which produce packaging made from renewable resources, bioplastic recycling, through which it recycles residual waste to be reintroduced into the production process; Electrical cable compounds, through which granules for the production of electrical cables are developed and manufactured.