ELECTROPLAST invests €9 million to modernize and expand in railway infrastructure

Romanian electrical cable manufacturer ELECTROPLAST has embarked on a significant modernization initiative, committing over €9 million to upgrade its factory and expand its role in major national railway infrastructure projects. This investment strengthens ELECTROPLAST’s position as a key player in high-performance cable production and supports the country’s energy transition and infrastructure modernization efforts. With Romania’s electrical cable market valued at an estimated 8 billion RON, the company is positioning itself at the forefront of industry developments.

In a landmark move, ELECTROPLAST has secured contracts for several critical railway projects, including the modernization of the Caransebeș-Timișoara-Arad line and the electrification of routes such as Cluj Napoca-Episcopia Bihor, Craiova-Caransebeș, and Apata-Cața. The company’s contributions to these projects underscore its commitment to supporting Romania’s railway infrastructure upgrades, aligning with the EU’s push for sustainable, efficient transport networks.

Dan Burian, CEO of ELECTROPLAST, highlighted the strategic value of these initiatives: “Our investment in cutting-edge technology and our involvement in pivotal infrastructure projects reinforce our role as a key supplier in projects driving a sustainable, high-performance future. We are proud to leverage our three decades of experience to modernize Romania’s industrial and transport landscapes.”

Part of the company’s 9 million EUR project includes purchasing advanced technological equipment, expanding production facilities, and integrating energy-efficient solutions. ELECTROPLAST recently signed a contract with the Ministry of Energy to acquire two state-of-the-art production machines valued at 10.9 million RON, with 4.6 million RON funded by the Ministry. This modernization will effectively triple the company’s production capacity and enhance the quality of its cables, aligning with global energy trends demanding sustainable, high-efficiency technologies as energy consumption is projected to increase by 50% by 2040.

ELECTROPLAST’s initiatives come as aging European low-voltage distribution networks near the end of their lifecycle, necessitating renewal with durable and efficient components. By advancing production capabilities, ELECTROPLAST is prepared to meet both domestic and European demand for resilient, eco-friendly cables, all while reducing operational costs and carbon emissions through digitalized, efficient production processes.

The company’s recent financial performance underscores its steady growth: in the first half of 2024, ELECTROPLAST reported an 80 million RON turnover, a 3% increase from the previous year, and a significant 56% rise in EBITDA, reaching 4.7 million RON. This growth was driven by a balanced product and client mix, alongside the unblocking of railway infrastructure projects funded by Romania’s National Recovery and Resilience Plan (PNRR).

Through strategic investments and an expanding portfolio of large-scale infrastructure projects, ELECTROPLAST is not only enhancing its manufacturing strength but also positioning itself as a pivotal player in Romania’s journey toward modernized, sustainable infrastructure solutions.