A look at how the EEA and Norway Grants have impacted a local business and its community

The rolls of paper in the production hall are massive. Innovation Norway is visiting the production site at Screen-O Transfer just outside of Iasi in North-Eastern Romania. The company produces paper cups, paper plates and containers for take away food.

Heavy investment in equipment

Sales manager Andrei Grigore walks us through the production hall. He explains that 90% of the money they received through the grants was spent on machinery.

Andrei Grigore (Screen-O): Of course the machines are the latest models, so in terms of efficiency, they are way better than the old ones, and the energy consumption is lower. The speed has been elevated, and the software also enhances the intelligence of these machines.

Screen-O got to know about the EEA and Norway Grants from Majutex - another beneficiary of the grants.

Andrei Grigore (Screen-O): We had machines we wanted to purchase and marked demand for these products. It wouldn't have been an easy investment for us to do on our own. Therefore, the financial assistance from the grants was very, very helpful.

© Eva Marie Bulai

Pictured: The production hall with the new machinery that has enabled Screen-O to increase their production of paper packaging. The machines can handle enormous rolls of paper.

"Everything changed"

Innovation Norway: How has the production changed after you made the new investments?

Andrei Grigore (Screen-O): Everything changed. When it comes to paper cups, prior to the investments we had 8 machines, now we have 14. So, from 8 to 14 we have almost doubled our production capacity. With this investment, the company can easily increase turnover with 30-40%.

Due to the enhanced efficiency of the machines, there is also a reduction in production waste. These machines offer improved cutting precision and a better range.

Andrei Grigore (Screen-O): For example, when you have a piece of board and you remove the cups, the remaining piece is waste. The old machine would maybe fit 6 cups, but the new machines are larger and can fit for instance 9 cups. We have optimised the use of board and reduced waste significantly. In addition - just from having another row of cups, we have 30% more productivity.

Employing young people

The company initially anticipated 11 new employees as a result of the project, but ended up welcoming 15 new individuals to Screen-O. All the new employees are from Iasi County and most of them are under the age of 30.

Andrei Grigore (Screen-O): We wanted to hire young people, even though they didn't have too much experience, to give them a chance to learn and to acquire new skills and grow professionally. We are very proud to be able to offer very good working conditions for our employees. The 15 new jobs are stable employment opportunities with competitive wages.

Given the fact that with the new equipment, Screen-O Transfer can produce more, it's easier for the company to meet all their costumers' orders, allowing them to continue their activities without any delays or interruption. Screen-O have also managed to acquire new customers, given that they can produce more in a shorter timeframe.

By using rawer materials, inks and packaging solutions, Screen-O are also educating their customers to be more conscious of their environment impact and become greener in their operations.

Innovation Norway: Would you recommend others to apply for the EEA and Norway Grants?

Andrei Grigore (Screen-O): Yes, of course. We have already applied for the second grant, so that in itself speaks volumes when it comes to our appreciation for the financial help we received. We would definitely recommend looking into the grants and submitting an application.

Facts

Programme: Business Development, Innovation and SMEs

Grant amount: €505.000

Total project cost: €878.605

Finalised: December 2022

Results

• Estimated annual growth operational profit: 27% compared to 2019
• 15 new employees
• Improved the production capacity for paperboard containers
• Invested in new machinery: paper cup forming equipment, double wall paper cup forming equipment, paper box, paper cup, automatic cup lids thermoforming equipment, die cutting and stamping machine, die cutting roll to sheet equipment.
• Expected annually decrease in CO2-emissions
• Reduced energy consumption
• Increase in re-use of processed waste

About the SMEs Growth Programme

SMEs Growth Romania is a business development programme aiming to increase value creation and sustainable growth in the Romanian business sector. The Programme is part of the EEA and Norway Grants 2014-2021. The EEA and Norway Grants aim at contributing to the reduction of economic and social disparities in the European Economic Area (EEA) and to the strengthening of bilateral relations between the Donor States (Norway, Iceland and Liechtenstein) and the Beneficiary States.

About Innovation Norway

Innovation Norway is the Norwegian Government's most important instrument for innovation and development of Norwegian enterprises and industry. Innovation Norway supports companies in developing their competitive advantage and to enhance innovation.

In Romania, Innovation Norway is managing two programmes: the Energy Programme and the SMEs Growth Programme.

This interview has been conducted in collaboration with Eva Marie Bulai.