The European Union will support Valmet Automotive in its plans to scale up its research, development and innovation (RDI) in the form of a EUR 20 million loan from the European Investment Bank (EIB). The operation is supported by the new generation of financial instruments for innovative and growth companies ‘InnovFin – EU Finance for Innovators’ with the financial backing of the European Union under Horizon 2020 Financial Instruments.
“Valmet Automotive is a sound company with highly innovative automotive solutions. With its focus on research and development, the investment is expected to strengthen the innovativeness and competitiveness of Valmet Automotive in a highly competitive market segment, as well as contribute to the safeguarding of skilled employment in the Finnish automotive industry.” said EIB Vice-President Jan Vapaavuori about the operation. “The collaboration between the European Commission and the EIB on InnovFin has been exemplary, to the benefit to many Finnish industries that have preceded Valmet Automotive in receiving support for their innovative plans.”
In particular, the loan will finance Valmet Automotive’s investment programme for the development of new products – including rooftop systems for convertibles cars - and manufacturing processes, also covering the costs for upgrading its IT and supply chain management system in support of the upgraded manufacturing processes. In this, the company strives for reduced use of raw materials and energy as well as minimizing related waste and emissions, focussing on ecological sustainability in all its activities.
“Valmet Automotive is growing fast, having more than tripled its workforce in 3 years, and is at the forefront of manufacturing in Finland. With this new EIB loan it will be able to upgrade its processes and develop new products. Finland is a highly innovative country, and I am pleased that Valmet Automotive will use this support from the EU to continue innovating and pushing new boundaries. It is particularly welcome that Valmet Automotive places a strong emphasis on energy efficiency and sustainability, which are core EU values”, added Jyrki Katainen, European Commission Vice-President, responsible for Jobs, Growth, Investment and Competitiveness.
“The EIB loan is a sign of trust in Valmet Automotive as a versatile service provider to the automotive industry. The financing enables investments in crucial areas of Valmet Automotive’s competitiveness and will support implementing the next steps of the company growth strategy”, stated Ilpo Korhonen, CEO of Valmet Automotive.
Background information:
Valmet Automotive Oy provides versatile engineering, manufacturing, and consulting services, specialising in premium cars, convertibles and their roof systems, and electric vehicles. The company employs over 2000 professionals in Finland, Germany and Poland. Working together with brands like Mercedes-Benz and Porsche, a total of 1.2 million cars made in Valmet’s native Uusikaupunki since 1969. Valmet Automotive is one of the biggest contract manufacturers in the world.
InnovFin is a new generation of financial instruments and advisory services launched in 2014 by the European Commission and the European Investment Bank Group under Horizon 2020, the EU research programme for 2014-20. In total, over EUR 24bn of financing is expected to support up to EUR 48bn of final research and innovation investments. One of the range of tailored products, InnovFin MidCap Growth Finance, offers long term senior, subordinated loans or mezzanine loans, in order to improve access to finance mainly for innovative larger midcaps (up to 3000 employees), but also SMEs and small midcaps. Loans from EUR 7.5m to EUR 25m will be delivered directly by the EIB.