This is the first time Romaqua owners have applied for state-aid for an investment. The state aid scheme (807/2014) changed this year, with the minimum required investment now being EUR3 million instead EUR10 million, which encourages investment from Romanian entrepreneurs. So far investments likely to make a major impact on the country’s economy that received state aid have been made by multinationals.
Romaqua officials said they could not provide any more information about the state aid they applied for for the time being.
Nicolae Palfi, Romaqua shareholder this June said the group would invest EUR30 million to EUR40 million over the coming year to refurbish the existing plants, in new technologies and to develop a new plant in Azuga, Brasov. Part of the money for the investment will come from bank loans, he said at the time.
The Finance Ministry got 32 state aid applications for a total of RON1.38 billion in the past two weeks. The proposed investment projects stand at RON3.8 billion and should create 5,242 jobs. Out of the 32 applications, 18 came from Romanian-owned business, and 14 from foreign-held companies.
Romaqua Group posted RON725 million revenue in 2017, 5% higher than in 2016. Last year was its best year ever in terms of revenue. Net profit was down about 5% to RON71 million, however. It expects growth of at least 15% to 18% in sales value and 18% to 20% in sales volume this year. Its brands include Borsec mineral water, Giusto soft drinks and Albacher beer.(EUR1=RON4.6578)
(English version by Loredana Fratila-Cristescu)