Summary sheet
One part of the project consists of RDI investments in Germany and Poland. They relate to food quality, health ingredients, packaging solutions and product portfolio expansion. The other part concerns investments in Germany for the construction and operation of a new production line for plant based beverages in Leppersdorf (Saxony, D) and the replacement of two obsolete dairy production lines at Aretsried (Bavaria, D) and Leppersdorf in orders to achieve energy savings.
The aim is to support the promoter innovation, the replacing of obsolete equipment, and its diversification in plant-based milk product. Hence the project supports the Promoter's "science-based target initiative" commitment.
The project supports the promoter's research and development activities in dairy and other food sectors, the replacement of obsolete production lines for yoghurt and desserts, and the creation of production capacity for plant-based drinks.
The financing of this project is aligned with the article 309, paragraph c), of the Treaty of the Functioning of the European Union, and participates to the Bank's public policies on Research, innovation and digital (45%) and energy (38%) and the efficient use of natural resources (17%).
The implementation of this operation, thanks to the reduction of the Promoter's carbon footprint and dependency to natural gas, will contribute to the national climate protection act and its objectives of carbon footprint reduction. The operation is fully aligned with the EU Energy Efficiency Directive (EED).
The Project addresses sub-optimal investment flows because of reduced negative externalities such as GHG emission reductions, information asymmetries on the food market and imperfect competition on the offtake side.
Funding the promoter's research and development is essential for its compliance with packaging regulations, reduce its carbon footprint, and maintain its market position. It will concentrate on the dairy value chain but also address the dressing and fish value chains. The investment in the plant-based beverage bottling line is the result of past RDI efforts and responds to an underlying trend in the dairy sector of decreasing milk availability, increasing demand for plant-based products and a lack of bottling capacity for this product range.
The replacement of technically obsolete production lines targets at reducing greenhouse gas emissions by saving energy. Moreover, natural gas is substituted, the use of chemicals is reduced while saving water and improving the promoter's logistics without increasing the quantity of milk processed.
The Bank's contribution to the project is also supported by a combination of its advantageous terms, flexible availability and utilisation of the loan, as well as helping crowd-in other financiers, thereby facilitating the project's financing and full implementation. Furthermore, the proposed loan will contribute to the diversification of the borrower's financing sources and thus strengthen the overall financing position of the company.
All project components are implemented within existing premises and will comply with applicable national and EU environmental legislation.
The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.