Release date: 30 July 2021
Promoter – Financial Intermediary
FAGOR EDERLAN S COOPLocation
Description
The project concerns the Promoter's investments in: (i) research, development and innovation (RDI), for lightweight components and systems for sustainable mobility and vehicle electrification, sustainable manufacturing technologies to increase resource efficiency and circularity, and advanced manufacturing technologies; (ii) the development and deployment of transformational digitalisation technologies. The project will take place in the period 2021-2024 at the Promoter's premises in the Basque Region, Spain.
Additionality and Impact
The project concerns the promoter's investments in lightweight component and system technologies for sustainable mobility and vehicle electrification, sustainable and advanced manufacturing technologies enabling resource efficiency and circular production models, a comprehensive digital transformation initiative across the company. It will contribute to knowledge creation, accumulation and diffusion, it will support the promoter's transformation strategy towards sustainability and digitalisation, and will contribute to the decarbonisation and transformation of the automotive industry. The investments contribute to the Bank's "Innovation, Digital and Human Capital"and partly "Climate Action and Environmental Sustainability" policy objectives. They address the market failures and gaps associated with imperfect competition and incomplete markets and those associated with positive environmental and knowledge externalities generation.
The project supports the implementation of the promoter's strategy, the transformation process to adapt to the evolving technology and market context and to build up a sustainable position to compete in the medium-long term. It will help strengthening the promoter's multi-technology know-how and competence. The project will add to the social welfare and bring about social benefits, by generating environmental and knowledge positive externalities. The promoter's R&D and technical capability, its focus on innovation, multi-technology portfolio, experienced management, reliable industry position and R&D collaborations help implement a sound and sustainable project, integrating positive environmental and social dimensions, helping to address and mitigate market failures, and contributing to the Bank's policy objectives.
The project will address a very specific market gap faced by cooperatives. Given that their equity base is constituted by the contributions of their employees and accumulated reserves, cooperatives do not raise equity in the capital markets to partially finance their investments or RDI programs. The EIB would provide the promoter with a long loan maturity, which would allow to obtain a more balanced financial structure and attract other lenders that could co-finance the project. The Bank's technical contribution and advice is explained by the guidance provided to align the project scope with policy objectives and the monitoring during project implementation.
Objectives
The project concerns the Promoter's investments in research, development and innovation (RDI) for advanced materials, smart manufacturing, energy- and resource-efficient processes, systems and components for electric vehicles. It also includes investments for the development and deployment of transformational green manufacturing and process technologies and investments for the development and deployment of transformational digitalisation technologies.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 27 million
Total cost (Approximate amount)
EUR 55 million
Environmental aspects
The project concerns investments in research, development and innovation that are expected to be carried out in already existing and authorised facilities. The project does not fall under any Annexes of the Environmental Impact Assessment Directive 2014/52/EU amending Directive 2011/92/EU. The Bank's services will however review any environmental details of the project during the due diligence. The results of this project are expected to contribute to the development of a more sustainable European transport system, through the development and deployment of lightweight metal components and components for electric vehicles, as well as energy- and resource-efficient manufacturing technologies.
Procurement
The Promoter is a private company not operating in the utilities sector and not having the status of a contracting entity. Thus, it is not covered by EU rules on procurement.
Status
Signed - 20/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).