MARCEGAGLIA AMT AND R&D INVESTMENTS

The project will finance the promoter's investment plan including: (i) advanced manufacturing technology (AMT, 84% of total PIC), capital expenditures (capex) comprising four different components that will modify and improve the existing steel processing plants in Ravenna and Gazoldo degli Ippoliti; (ii) research, development and innovation (RDI) activities (16%). AMT capex are spread over a period of 5 years, from 2024 to 2028 included, while RDI activities cover a period of 4 years, from 2024 to 2027 included.

The aim is, among others, improve energy efficiency, decarbonise selected equipment through electrical energy recovery (cranes) and electrification of heat (furnaces), increasing product quality and automation levels to optimise the production process and cost efficiency.

The Project comprises the Promoter's investment plan in advanced manufacturing technology (AMT) and R&D activities to be carried out at its steel processing plants in Italy. Overall, the Project will increase automation and operational productivity, improve energy and environmental efficiency via the use of state-of-art energy management and recovery systems, develop innovative production processes which allow to obtain a higher quality product while having a lower environmental impact. It will strengthen the Promoter's technological know-how in production cycle automation with a view to increasing productivity and energy efficiency and to providing its customers with higher added value and more sustainable products.  

The Borrower will benefit from the access to stable and long-term funding and flexibility in terms of availability period, number of drawdowns and competitive pricing. Additional, financial contribution

stems from a possibility to convert or revise the interest rate, a further diversification of Promoter's funding sources, as well as a positive signalling effects and crowding-in of other financiers.

The RDI activities will be carried out in existing facilities and it is expected that their authorised scope will not change. These types of activities are not mentioned in the Annexes of the environmental impact assessment (EIA) Directive 2014/52/EU amending 2011/92/EU. The AMT related capex will also be implemented in existing authorized facilities, mostly on existing manufacturing lines and are not expected to have significant impacts on the environment. It will be assessed during appraisal if any of the AMT related capex require an EIA or an EIA screening decision. Other environmental aspects will be assessed during due diligence.

The promoter is a private company not operating in the utilities sector and does not have the status of a contracting authority. It is thus not subject to EU rules on public procurement.