REI Grup launches €2.5 million paper packaging factory in Călan, with 61.98% funded by EU program

REI, a leading Romanian consultancy for non-reimbursable funding, has started building its first production facility: a modern kraft paper bag factory in Călan. The project is implemented by REI INTERNATIONAL CONSULTING S.R.L. and the total investment exceeds €2.5 million, of which 61.98% is non-reimbursable financing secured through the Regional Development and Just Transition Program.

After more than 15 years advising clients on EU and state aid financing, REI Grup is diversifying into manufacturing to produce eco-friendly, biodegradable and recyclable packaging. Construction began in the second half of 2026, with completion planned for the first half of 2027.

"After more than 15 years of helping hundreds of companies expand through non-reimbursable funding, the time has come to put our expertise into practice as investors in local manufacturing. The decision to invest in this new production line follows a thorough analysis of the Romanian paper packaging market and our country's strategic positioning at the European level, offering high potential to serve both local customers and export markets - where recent years have shown even stronger demand growth. We are pleased to have secured the necessary financing - an investment loan alongside non-reimbursable funding obtained through the Sustainable Development and Just Transition Program - and we are confident we will complete construction on schedule and launch production for our future clients”, Roxana Mircea, Managing Partner of REI Grup stated.

Product focus and market positioning

The new plant will manufacture kraft paper bags, positioned as an alternative to plastic following Romania’s January 2019 ban on the sale of plastic bags under Law no. 87/2018 (amending Law no. 249/2015). Kraft bags are highlighted for flexibility, weight durability, grease resistance and adaptability to variable temperatures.

Primary customers will include e-commerce clients — a segment generating approximately 24% of total packaging demand — as well as the food industry (home delivery restaurants, catering services, bakeries, pastry shops, confectionery stores, and rotisseries), fashion and retail (clothing, footwear and accessories), and cosmetics and pharmacies. All products will be printed and customized to clients’ graphic, color and design specifications.

Why Călan: just transition and local impact

REI Grup selected Hunedoara County and the city of Călan in response to socio-economic challenges linked to the phase-out of coal-based energy at the Hunedoara Energy Complex and the planned closure of mining activities starting in 2030, processes affecting more than 2,000 employees. Official data show nearly 86% of mining employees are aged between 40 and 60.

The investment aligns with the Territorial Just Transition Plan for Hunedoara and seeks to mitigate social impact by creating jobs and supporting reskilling: the plant will employ a minimum of 15 people, with at least 75% of the workforce residing in Hunedoara County; one-third of employees will be recruited from vulnerable groups; and at least 20% of hires will benefit from nationally recognized training programs (introductory, qualification, retraining or specialization courses).

"Selecting the city of Călan and Hunedoara County was both a heart-driven and a strategic business decision, made back in 2024. For two years, we have aimed to expand into a new sector, and we identified here immense potential for sustainable industrial development, as well as a genuine need to support the community amidst the decarbonization process and the closure of mining operations. Through the Just Transition Program, we are not only building a modern, green, and fully automated plant, but we are also offering a concrete opportunity for retraining and secure jobs for those impacted by these structural changes. We want the Călan factory to stand as a best-practice model in the transition toward a sustainable, clean, and inclusive economy", Roxana Mircea added.

Facility features and sustainability measures

The project includes construction and technological outfitting of two buildings for production, storage and administrative spaces, as well as site works, fencing and utility connections. The production and storage facilities will have a built area of over 1,000 sqm on a land plot exceeding 17,000 sqm within the Călan Industrial Park.

The plant will be fully automated and designed with sustainability in mind: a 74 kW photovoltaic system composed of 148 500W panels and a 60 kW inverter (74 panels allocated to each of the production and storage halls); 14 standalone solar-powered streetlights for outdoor illumination; air-to-air heat pump systems for climate control and heating; and a high-performance waste compactor capable of reducing stored waste volume by up to 90%.

Market context and export potential

The Romanian paper packaging market is growing, driven by demand for sustainable packaging and the rapid expansion of e-commerce. Domestic production of paper/cardboard sacks, bags and envelopes rose from 21,571 tonnes in 2018 to 22,809 tonnes in 2022, with paper sacks and bags with a base width of 40 cm reaching 20,312 tonnes in 2022.

Import volume increased by 13% in 2022 to 23,514 tonnes, with Hungary (5,703 tonnes), Poland (4,379 tonnes) and Germany (2,516 tonnes) the main suppliers. The shift toward EU suppliers follows a sharp rise in maritime freight costs and longer delivery times from China. Romania exported 15,993 tonnes of paper bags and packaging in 2022, with exports valued at over €36.2 million in 2021 and principal destinations including France, Bulgaria, Italy and Greece.

REI Grup intends for its automated local production in Călan to serve domestic demand, reduce dependence on imports and develop export partnerships.

About REI Grup

REI Grup comprises REI Finance Advisors, REI International Consulting and Touched Marketing, offering development, implementation and monitoring services for investment projects. The group works with non-reimbursable EU funds (Modernization Fund, Regional Operational Programme, Large Infrastructure Operational Programme, NRDP) and State Aid schemes (GD 959/2022, GD 495/2014, GD 807/2014, GD 332/2014, GEO 81/2019, GEO 20/2025, among others).

According to 2025 data, REI Grup recorded consultancy revenues exceeding €3.8 million and ranks among the top Romanian firms in EU and State Aid financing. The team includes over 80 specialized consultants across 12 cities and expanded internationally with an office in the Republic of Moldova (2026). To date, REI Grup has secured financing for over 2,500 clients and implemented more than 1,500 projects, reporting an industry-leading success rate of 98%.

Other articles
ElectricSun.de