The National Society for Mineral Waters (SNAM) in Romania announced it is waiting for approval from the Ministry of Economy, Commerce and Tourism to start building two to four plants destined for mineral water bottling. This means an investment of up to EUR 20 million, financed through a bank credit.
SNAM officials say that only 30 percent of the potable water flow in Romania is exploited and the remaining 70 percent is lost because there is not enough capacity for bottling. The society only holds licenses for exploration and exploitation of water. This would be the first project of its kind to be initiated by a state company in Romania.
Out of the total of national licenses, SNAM currently owns 82, making up 75 percent, of which 68 are for exploitation the rest for exploration. At the moment, it has no bottling plants because the Competition Council issued a document stating that the company which exploits mineral waters cannot also bottle them.
The society operates between 80 and 100 springs throughout the country. In 2014 it has produced 910.7 million liters of natural mineral water, increasing by 1.4 percent year on year. Of the total amount, 553 million liters are of carbonated natural mineral water while flat mineral water production was of 357.7 million liters. The company also produced 58.4 million liters of balneary mineral water. The estimated production for this year is of 1 billion liters (balneary and bottling).
The company made a net profit of RON 1.91 million (EUR 0.43 million) with a turnover of RON 29.35 million (EUR 6.56 million). For this year, SNAM expects a turnover of RON 30.39 million and a net profit of RON 2 million.