Teraplast: Market will grow over the next few months if state pays its debts

Representatives of PVC profiles producer Teraplast Bistrita (TRP – stock exchange symbol) say there the construction materials market could rise over the next few months provided that the state pays its debts for public-sector projects that have already been completed.

Last year, the main markets where the company operates recorded declines of 20 to 35%, according to the company’s annual report. However, the major investments conducted by Teraplast over the last two years, which amounted to 81.9 million RON (around 21 million euros) enabled the company to limit its decline to 3.4% in 2009, to 188.2 million RON (44.5 million euros). A portion of the sum – 13 million euros, was raised from the Stock Exchange via an initial public offering in 2008, the last IPO to be conducted by a company on the Bucharest Stock Exchange.

“We expect the company’s main markets to fare better over the next few months provided that the state pays its debts to construction companies. Otherwise, even if they have projects, construction companies will risk arrearage because of lack of cash. Teraplast relies in particular on the infrastructure segment, while residential and non-residential projects are likely to see only slight rises on last year,” says Florin Urite, general manager of Teraplast.