Hungarian Government Subsidizes Project in Serbia

The Hungarian construction material company MASTERPLAST is starting a project, to be implemented at its subsidiary, MASTERPLAST YU D.o.o. located in Subotica, northern Serbia. The project is supported by Hungarian taxpayers.

With the project, the glass fabric production capacity will be expanded by 25%, the existing weaving and coating machine park will be modernized, a modern warehouse base and a prefabrication department will be established. With the new machines based mainly on modern German technology and renewable manufacturing, logistics and assembly services, the Group will be able to serve the market of premium quality products with the highest quality.

The 25% own resources of the EUR 7.6 million project is provided by funds raised from the Hungarian National Bank’s growth bond program, while the Prosperitati Foundation, which is sponsored by the Hungarian government, provides 39%, approximately EUR 3 million, of non-refundable state support, and the MASTERPLASR YU D.o.o. uses a bank loan for the remaining part. Construction work will begin in early 2021, and after the successful commissioning of the production units, production is expected to begin in early 2022.

The Prosperitati Foundation entered into a grant agreement on January 8, 2021 with MASTERPLAST YU D.o.o.

With the implementation of the project, the production of the Group's glass fabric is planned to increase to 150 million m2 / year, which makes the Masterplast Group the second largest producer of glass fabric in Europe and the third largest in the world.