EIB loan: Leoni develops new cable systems for future car generations
- Release date: 21 February 2013
- Reference: 2013-023-EN
The global company Leoni AG has received a EUR 100m loan from the European Investment Bank (EIB) for its research work in the area of automotive electrical and electronic distribution systems. By using new materials and production processes, the company is aiming to help reduce the weight of cars and to gear its product range more strongly to energy-efficient vehicles.
Leoni is one of the world’s leading manufacturers of wires, optical fibres, cables and cable systems. In addition, the company provides related services for the automobile and other industries. Working closely together with research institutes, system suppliers and original equipment manufacturers (OEMs), Leoni will focus its research and development activities that are now being co-financed with an EIB loan on new conductor and insulation materials, innovative wiring design solutions (e.g. 3-D wiring) and comprehensive wiring systems. The R&D activities covered by the project will be carried out by the company on its sites in Germany, the United Kingdom, France and, on a smaller scale, in Slovakia. The research project is scheduled to start in the coming year and is expected to be completed in 2016.
As the bank of the European Union, the EIB finances economically viable projects that are in line with EU objectives. Its core tasks include investment in education, research, development and innovation. In the past year alone, the EIB provided EUR 9bn for investment in the knowledge-based economy, EUR 2bn of which went to Germany. Over the next few years, the Bank will actively step up its involvement in this sector in order to reinforce the EU's long-term economic growth and its competitiveness, particularly on a global level.
At the signing of the contract, Wilhelm Molterer, Vice-President of the European Investment Bank whose responsibilities include financing operations in Germany, stated, “Industrial research and development are the pacemaker for sustainable growth in Europe. They are the means to securing the EU's future and generating employment in the long term. With its research programme, Leoni is leading the way by seeking globally attractive and consequently competitive solutions for climate-friendly mobility.”
In 2012, the wiring specialist reorganised its financing structure. "The loan granted by the EIB rounds off our long-term financing portfolio and provides us with an additional strategic partner”, said Dieter Bellé, CFO of Leoni AG.