Spain: EUR 59 million for Tubos Reunidos’ investment in innovation

The European Investment Bank (EIB) has granted a EUR 59 million loan to Tubos Reunidos, S.A. (TRG) to finance research, development and innovation (RDI) involving the production of new steels and seamless steel tubes.  The finance contract for the first EUR 45 million instalment was signed in Madrid today.

The set of investments to be financed by the EIB loan focuses on the development of new steels, special tubing and technologically advanced production processes designed to meet the increasingly demanding requirements of oil and gas exploration and production and power generation.  The project specifically aims to develop seamless higher alloy and stainless steel tubes with more complex and demanding specifications that i) increase the efficiency of equipment and processes in the power generation and petrochemicals industries and ii) offer greater resistance to corrosion, pressure, extreme temperatures and aggressive environments for non-conventional new technologies in hydrocarbons exploration (shale gas, directional wells, off-shore, deep water).

This EIB loan for Tubos Reunidos’ RDI will also help to create jobs, improve workplace safety and increase the efficiency of product manufacturing and treatment processes. The R&D programme will run until 2016 and be carried out at Tubos Reunidos’ production plants in Amurrio (Álava) and Galindo (Vizcaya). This is the EIB’s first operation with Tubos Reunidos.

This loan reflects the EIB’s commitment to supporting RDI and promoting the development of midcap companies. The Bank does more than simply provide long-term loans. At a time of restricted credit, it helps to finance new technologies that underpin sustainable economic growth and job creation.

Since the beginning of the year, the EIB has provided loans totalling EUR 7.129 billion for projects in Spain, including EUR 721 million for RDI.