REI Finance Advisors, consultancy company specialized in attracting non-reimbursable funds for Romanian companies, has successfully brokered 2,5 million euros in state aid for Sterk Plast, one of the most important plastic production companies in Romania, part of a 5 million euro investment project.
The project aims to expand the production capacity of the Sterk Plast factory in Medgidia, with a total value of 5 million euros, while the state aid, obtained under the state aid Scheme regulated by GD 807/2014, will provide 50% of the investment project.
"We have sought to find the best solution for financing our investment project in increasing the production capacity of the Sterk Plast plant, or in purchasing new equipment that will increase both the current portfolio and the possibility to launch new product ranges on the local market. Moreover, the expansion of production capacity will help us to increase our export presence, targeting 40% of our sales for the next few years to be found on Bulgaria, Germany, UK, Greece, Hungary, Poland, the Republic of Moldova, Ukraine or Russia markets. Sterkplast's total investments in Romania has reached over 20 mln. of euros so far and will continue in the coming years", stated Suleyman Islambay, administrator of Sterk Plast.
Sterk Plast, a company specialized in plastic production, started a large investment project in 2015 in a new plant located in Medgidia, Constanta County, with an area of over 42,000 sqm. In 2018, it became operational. The company employs over 450 people and had a turnover of about 27 million euros in 2020.
"We are pleased that we have been able to meet all the necessary conditions for obtaining the Financing Agreement with the Sterk Plast project in a very short time of about three months, aimed at expanding the production capacity of the Medgidia plant. More and more companies have started developing investments in the last year, using a financing solution of up to 50% through the state aid Scheme regulated by Government Decision 807/2014, for projects with a minimum investment value of 1 million euros. These are the last months in which companies can still apply through this Scheme and the interest is very high, mainly due to the much relaxed conditions, the short time-frame of the Agreement and the possibility of implementation over a longer horizon, i.e. until 2028”, said Dan Bold, Business Development Manager at REI Finance Advisors.
The Scheme covered by the GD 807/2014 is the only source of non-repayable financing for investments available at the moment, where there is an open session and projects can be submitted continuously up to 31.12.2023 and can be implemented gradually, until 31.12.2028. Acquisitions can also be started once the business plan has been submitted to the Ministry and the acquisition procedure has been carried out. There is no need to wait for the agreement to be issued for an additional 3-4 months period, unless the beneficiary wishes so.
The Scheme grants 10% non-reimbursable financing for projects implemented in Bucharest, 35% - Ilfov and the West of the country (counties of Arad, Caraș-Severin, Hunedoara and Timiș) and 50% non-reimbursable financing in the rest of the country.
Eligible for funding are both start-ups, owned by shareholders who are no longer involved in other companies operating in the same field, SMEs or large companies, with thousands of employees. The condition would be that the applicants had a profit in at least one of the last 3 years of activity.
For this year, REI aims to obtain financing for at least 100 companies through the Government aid scheme governed by the GD 807/2014.