US bottled water producer Nirvana Water has secured a $4.3m long-term loan from the Small Business Administration (SBA) to buy and operate the equipment to make its own bottles and caps.
The expansion project will allow the company to install and complete more bottling and packaging operations at its Boonville plant in Oneida County, New York.
New York SBA had arranged the loan from the US Small Business Administration through one of its economic development programmes, which is part of a bigger package that includes private money and will total about $10 million, company officials said.
US Senator Charles Schumer, who announced the approval of the loan said that the funding will open up the flood gates to more water and more jobs.
According to Nirvana Water, the movement of operations inside the Boonville facility is set to expand the firm’s production to 20 million bottled water cases each year.
The expansion plan is part of Nirvana’s strategy to focus on its own brand through in-house manufacturing, which is expected to help the company take various outsourced production methods.
The new equipment is set to strengthen various operational capabilities of the firm, including bottle manufacturing, along with filling, packaging and bringing them to the Boonville plant.
Nirvana said the SBA loan will allow the company to pump out an additional eight million cases of its water a year and estimates that these business decisions will save the company millions of dollars every year in overhead costs.