SANDVIK SPECIAL MACHINING AND TOOLING RDI

The loan will finance research, development and innovation (RDI) activities to develop new tools for industrial production, mining and construction equipment. RDI investments will be carried out in the Group's existing RDI centres in Sweden, Finland and Germany over the 2022-2025 period.

The promoter's RDI investments in new product technologies will improve productivity and environmental sustainability in the manufacturing processes of the promoter's clients, by contributing to the deployment of new machining and tooling solutions on the market.

The proposed operation supports the Bank's Research, Innovation and Digital objective.

The financing of this project supports RDI activities in developing new products and technologies in the area of construction and mining equipment, as well as in the field of tools and tooling systems for advanced industrial metal cutting. The project is expected: (i) to increase the productivity of the promoter's customers through the development of innovative solutions in terms of performance, quality, speed, safety, flexibility and energy efficiency; (ii) to improve the cost competitiveness of the promoter's products and technologies; and (iii) to allow the deployment of environmentally-friendly technologies and solutions in related industries.

The project will generate positive knowledge externalities through cooperation with suppliers, customers, scientific institutes and universities. Moreover, the project will also help maintain highly skilled jobs in the promoter's EU27 research facilities, specifically in Sweden, Finland and Germany.

The promoter's investments address the market failures and gaps associated with (i) imperfect competition and incomplete markets for innovative sustainable technologies and those addressed by (ii) projects with positive knowledge and environmental externalities generation.

The Bank's contribution to the project is also supported by a combination of advantageous terms, flexible availability and utilisation of the loan. The loan is expected to crowd-in other financiers, thereby facilitating the project's financing and implementation.

The project includes RDI activities that are not specifically mentioned under the Environmental Impact Assessment (EIA) Directive and that will be carried out in existing facilities without changing their already authorised scope. The project will therefore not require an EIA under the directive 2014/52/EU amending directive 2011/92/EU.

The promoter is a private company not operating in the Utilities sector and not having a status of a contracting entity. Thus it is not covered by EU Directives on procurement.