The European Investment Bank (EIB) announces a loan of EUR 120 million (1) to ARBED SA Luxembourg for modernising and extending ARBED Group production facilities in Luxembourg, Belgium, Germany, France and the United Kingdom.
The finance contracts were signed today, 12 December, by Mr Philippe Maystadt, EIB President, and Mr Fernand Wagner, CEO of the ARBED Group.
This latest EIB operation further bolsters Bank support for adapting the European iron and steel sector to structural changes on the market, so enhancing the competitiveness of European manufacturers. The works financed form part of an ARBED Group investment programme geared to improving the quality and broadening the range of its products as well as modernising steel production plant plus facilities for wire drawing and manufacturing copper foil. The overall scheme will have a positive impact in terms of environmental protection and employment. In addition, part of the planned investment will foster the development of less privileged regions. The network of ARBED service centres will also be rationalised by upgrading the installations concerned.
The works focus on galvanising lines in Ghent (Belgium) and Bremen (Germany), wire drawing facilities in Bissen (Luxembourg), copper foil installations in Wiltz (Luxembourg) and a hot rolling mill in Bremen (Germany), together with various service centres in Germany, France and England.
Over the past five years, the EIB has devoted some EUR 8.6 billion to funding projects designed to preserve European industry's competitive edge, particularly in the motor vehicle, chemicals, pharmaceuticals, electronics, paper and basic metals sectors. Under this heading, the Bank has, since 1995, contributed around EUR 280 million towards four operations involving the ARBED Group : construction of electric arc furnaces and related long steel production equipment in Esch-Belval (Luxembourg) and Saalfeld (Germany), along with environmental protection facilities at several locations in Spain and Belgium.
(1) EUR 1 =0.596700 GBP; 40.3399 LUF/BEF