Apemin Tusnad, a mineral water producer, is to invest 5m euros to triple its production capacity amid the sustained growth of mineral water consumption domestically and the company's debut on the segment of soft drinks.

"We have recently signed the contract for the acquisition of a new bottling line and the investment plan also includes the construction of a production hall. This will be finalised in the spring of 2007 once the new line becomes operational," Gyarfas Kurko, Apemin Tusnad general manager, told ZF.

"We are currently focusing on the Romanian market given that exports take additional efforts. At present, less than 1% of Apemin Tusnad turnover comes from the countries we are exporting to, Hungary and the Republic of Moldova," Kurko also said.

He added, however, that the company was not ruling out the possibility of focusing more on foreign markets in the future.

The production capacity increase will be 60% financed through banking loans, but also with the company's own funds and, to a smaller extent, with loans from suppliers, says Kurko.

The company expects to see its turnover advance by more than 50% this year, to 10m euros. Moreover, the company's officials say, Apemin Tusnad plans to tap into new market segments, complementary to the mineral water sector.

"Once a new production line becomes operational, we will also launch new premium product brands, entering the segment of non-carbonated soft drinks," Kurko also said.

Non-carbonated beverages currently make up one of the most dynamic segments of the Romanian soft drink market owing to shifting consumer preferences.

Apemin Tusnad last year invested in new products, namely "Izvorul Zanelor" spring water, positioned on the premium segment, and "Izvorul Ascuns" water, positioned on the economic segment and distributed nationwide. Last year, the company a