The European Investment Bank (EIB) is providing a EUR 125 million loan to Corporación Gestamp S.L. in support of its research, development and innovation activities for automotive metal applications. An additional EUR 50 million will be intermediated by Instituto de Crédito Oficial (ICO). The finance contract between the EIB and Corporación Gestamp S.L. for EUR 125 million was signed in Madrid yesterday.

The project financed by the EIB consists of two parts: firstly, RDI activities for automotive metal applications designed to further improve the fuel efficiency and safety of vehicles. Secondly, investments in technology implementation for enhanced productivity and energy efficiency located in the promoter’s plants in convergence regions in Hungary, Slovakia and Turkey, and the construction of new plants in the Czech Republic and Romania. The implementation of the project will take place between 2011 and 2014.

The investments in Central and Eastern Europe will have positive effects on the local economies as well as a direct effect on employment in these convergence regions and the company’s modernisation in the Czech Republic, Hungary, Romania, Slovakia and Turkey. They are expected to increase staff by about 400 new local employees.

The project will also contribute to the sustainable growth of the productive sector and to the strengthening of the regional business environment.

The European Investment Bank (EIB) is the EU’s long-term financing institution promoting European objectives. Created in 1958, it operates in the 27 EU Member States and more than 130 other countries around the globe. The Bank’s financing is geared to well-defined European policies In December 2008 the Bank launched its stimulus programme for the automobile industry. The main objective of these loans has been to support development with a focus on manufacturing cleaner automobiles.