Investment Plan for Europe: EIB supports Cramo’s European growth strategy
The European Investment Bank (EIB) and Cramo - a leading Finnish rental group for construction machinery and equipment - have signed a EUR 50m loan agreement to further modernise and expand Cramo’s fleet. The agreement was made possible by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe, which was launched by the EIB Group and the European Commission to boost the competitiveness of the European economy.
The EIB loan backs Cramo’s European growth strategy and commitment to a circular economy. It will support the company’s innovative business model, and help to improve the performance and environmental impact of its fleet in 2018. The EU and EIB consider equipment rental business as an ‘innovative form of consumption’ by sharing products and increasing the rates of how often, products are used. The project will contribute to increase sustainability in the construction industry while strengthening circular economy.
Vice-President Alexander Stubb, responsible for EIB operations in Northern European countries, said: “The development of a more circular economy in the EU will help to reduce our dependency on imported raw materials. It has enormous potential for creating a sustainable and competitive advantage for Europe. That’s why I’m glad that the EU Bank supports business models such as Cramo’s, which lead the way to a greener economy.”
”We are pleased with the financial support from EIB as it gives Cramo Group increased possibilities to strengthen our growth strategy and our ambition to be a shaper of the rental industry. With a strong innovation and performance culture and with sustainable solutions we seek to capture the potential in the market and develop solutions that meet the changing needs of our customers,” says Leif Gustafsson, President and CEO of Cramo Group.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "The EUR 50 million loan, made possible by the European Fund for Strategic Investments (EFSI), to modernise and expand Cramo’s fleet of construction machinery is a good example of the Investment Plan for Europe financing growth of European SMEs. I encourage other growth-seeking companies with sustainable and circular business models to follow the precedent and seek EFSI – financing for their expansion."
Promoting a circular economy, where the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste is minimised is a key EU policy priority. The EIB together with the European Commission supports the Member States in their transition towards a circular economy by providing finance and advisory services for projects. During the last five years the EIB has co-financed projects worth EUR 2.4 billion with a positive impact on sustainable and economic growth, competitiveness and employment.