CORRESPONDENCE FROM BUDAPEST Alexandru Stânean, TeraPlast: "We want to be leaders in any market; we didn't come to Hungary to pretend"

TeraPlast aims to become the leader of the market for sewage pipes, water supply and gas supply in Hungary, where the construction materials manufacturer from Bistriţa recently acquired the Wolfgang Freiler Group, according to the statements of Alexandru Stânean, the general director of the TeraPlast Group, made on the occasion of a conference in Budapest.

Alexandru Stânean said: "Our principle is to be leaders in whatever market we are active in, so we did not come to Hungary to pretend. We want to become leaders in our market segment. I think that, in Hungary, the competitive landscape is much more accessible than in Romania, the competition is less, but the market is more complicated. In Romania, there is an effervescence of the construction sector, the likes of which I have not seen in my entire career of twenty years. In Hungary this situation does not yet exist, but it will probably follow, as the country begins to access funds".

He added: "I would like us to become leaders as soon as possible, but not further than five years. We still have small investments to make, we have to build the PVC pipe factory, after which we will have everything we need to be able to become market leaders".

According to the general manager of TeraPlast, the investment in the PVC factory amounts to around 3.5 million euros. "Part of the equipment has already been bought, we are going to move on to the construction part of the building, preparing the infrastructure, electricity and what else we need to be able to start production. In an optimistic version, by the end of the year the factory should be functional; in a less optimistic version in the first part of next year. They already have the polyethylene pipes, so we will have everything we need to be able to cover all the infrastructure needs in Hungary and beyond, because the infrastructure here allows us to be efficient within a radius of two or three countries. We cover Austria, southern Germany and Poland, Slovakia and the Western Balkans," said Alexandru Stânean. According to the director of TeraPlast, in Hungary, the Group aims to become a leader in the market of sewage pipes, water supply and gas supply, PVC pipe and polyethylene. "We start from the third position on the market, with a share somewhere around 10% of the share of the main competitor, so the business must grow exponentially to reach our goal", stated the director of TeraPlast.

The TeraPlast Group is the largest polymer processor in Southeast Europe, with almost 130 years of tradition and proven track record of innovation and development, regional leader in its activity markets. The group operates in four countries, its product portfolio being structured on several business lines: Installations, PVC Granules, Rigid PVC Recycling, Flexible Packaging, Windows and Doors. Currently, more than 1,100 employees work within the Group, and the total production capacity amounts to almost 196,000 tons/year. The Group's products reach 22 European countries, exports representing 17% of the turnover. TeraPlast SA, the parent company of the Group, has been listed on the Bucharest Stock Exchange under the symbol TRP for sixteen years. The company's shares are included in the benchmark BET index of BVB, the Small Cap and Global All Cap indices of FTSE Russell and the MSCI Frontier IMI (Investable Market Index) indices. The Austrian Wolfgang Freiler Group has a tradition of over 30 years and a solid presence in Western European markets, with exports to countries such as France, Germany and Slovakia. The group is composed of six companies: Polytech Industrie Kft., Pro-Moulding Kft., Wolfgang Freiler GmbH & Co, Sorgyari Ipari Park Kft., Itraco GmbH and WF Kunststoff Handels GmbH.

The production activity of the Wolfgang Freiler Group is carried out in two factories. Pro-Moulding, located in Nagykanizsa is in the south-west of Hungary, and Polytech, located in Fertoszentmiklos is in the north-west of Hungary. Both locations total 147,000 square feet. Polytech specializes in the production of cable protection pipes, with over 80% of its products being made from recycled materials. Pro-Moulding deals with the injection of plastic masses, being specialized in the production of components for electronic equipment, agricultural machinery and automotive components, with a particular focus on high gloss products.

The total transaction value of the purchase of the Wolfgang Freiler Group by the TeraPlast Group was 16.53 million euros.