“This year we will make our most important partners, the retailers, understand the utility of RVMs (reverse vending machines) in the SGR (deposit-return) “ecosystem”. Our efforts will be focused on making ourselves known to as many potential clients as possible, so that, in the next 2 years, we gain market share and position ourselves as one of the important players on the RVM market. Our plans are underway – the factory in Romania will produce stand-alone RVMs for all European markets where the Envipco group operates. Our production capacity, with the current production facility, is a maximum of 10,000 devices per year,” Bogdan Purcherea, Managing Director, Envipco Romania told Sustainability Today.

“In the next 2-5 years, we estimate (depending on the expansion of the warranty-return systems in other European markets) that we will double our production capacity, both in terms of space and the size of the team.”

Envipco produces locally, in Alba County, intelligent equipment for the selective collection of beverage packaging, ensuring maintenance and service with the Romanian team.

How do you characterize the implementation process of the guarantee-return system in Romania?

I believe that the SGR implementation process in Romania is complete, aligned with other processes that I have seen in Europe. I also think that a very important aspect is that all stakeholders are aligned and want it to be implemented; everyone is involved, they are at the same table and discuss, which increases the chances of success.

At this moment, the process of registering traders, which is nearing the end, is a success, steps will be taken forward according to the established process.

As far as I know, the implementation roughly falls within the established timing; It’s true, there are still a few pieces missing, such as the collection centers and other aspects related to logistics, but, as I said earlier, a competent and united team is in charge of implementation, so we don’t worry.

How is Envipco Romania preparing for the implementation of SGR?

We are ready. From a production and operational point of view, we have a fully functional production line; we have the structure, the team, the acquisition chain. At the moment, we produce for Romania and Europe according to requests.

From a commercial point of view, we are in advanced discussions with the big players in the retail market and we have started talking with regional retail chains and medium and small traders.

Also, we are very focused on local communities (UAT – administrative-territorial units), which we believe will have an important role in the coming years. We believe that their involvement is the only chance to reach our collection targets assumed through SGR.

How do you think the Romanian market will react after the implementation of SGR?

The first 6 months will certainly be extremely demanding for all parties involved:

– for retailers, who will have to collect in parallel pre-SGR packaging (packaging on the market before the implementation of SGR and which will not be able to be collected in the system) and SGR packaging (packaging that will bear the SGR markings, will carry a guarantee and will be collected in the system) along with educating clients, which will generate a great operational effort;

– for the industry, which will feel a setback in a first phase, both through the perceived increase in the price of the products on the shelf (by adding the value of the guarantee), and through the increase in the costs of the producers, who will have to integrate the costs of implementing the system – and these costs they will probably also be reflected in the sale price.

After 6 months, I expect everything to return to growth and settle down, with benefits for all parties.

What are Envipco Romania’s expectations regarding the evolution of the market after the implementation of the SGR?

We believe that before the launch date of SGR (November 30, 2023), the sale and installation of Reverse Vending Machines (devices for automatic collection of beverage packaging) will not exceed 15-20% of the potential volume, and the next 2 years will be the most important ones, because during this period both international networks and local merchants will install RVMs, so that, when the town halls, which are targeted in the second phase of the SGR implementation, will also get involved, we will reach the fulfillment of 100 % of the established recycling objectives.

We believe that this evolution will be determined by the natural inertia in the case of large stores and the learning curve necessary for small stores and administrative-territorial units.

What are your priorities in 2023?

This year we will make our most important partners, the retailers, understand the utility of RVMs in the SGR “ecosystem”. Our efforts will be focused on making ourselves known to as many potential clients as possible, so that, in the next 2 years, we gain market share and position ourselves as one of the important players on the RVM market.

Also, to the extent necessary, we will continue to make ourselves available to stakeholders with know-how so that the SGR will be functional next year.

What are your plans for the RVM factory in Sebes? What is the current production capacity?

Our plans are underway – the factory in Romania will produce stand-alone RVMs for all European markets where the Envipco group operates. Our production capacity, with the current production facility, is a maximum of 10,000 devices per year.

We have established high standards regarding the products and services offered to all customers, without exception – top quality, top delivery.

We also want to become a top employer, to define a new standard for what it means to be an employer in the industry and region; I am referring here both to the conditions offered to employees (including their training and professional development), as well as to involvement in the community.

What is the investment plan for 2023, respectively in the medium and long term?

If in 2022 we invested in the Sebes factory, which was opened in May last year, this year we propose a horizontal development – to produce appliances, to increase volumes.

In the next 2-5 years, we estimate (depending on the expansion of the warranty-return systems in other European markets) that we will double our production capacity, both in terms of space and the size of the team.