ADVANCED TYRE MANUFACTURING EUROPE

The project concerns the digitalisation of the Promoter's European industrial operations, including central IT deployment as well as advanced manufacturing investments in the Promoter's existing facilities in Poland, Spain and Hungary.

The project encompasses the implementation of an Advanced Automation Strategy in Spain and the reinforcement of the Promoter's manufacturing footprint in cohesion countries (Poland and Hungary).

The financing of the project through the EIB will support the digitalisation of the promoter's European industrial operations in Poland, Spain and Hungary. The project contributes to the Bank's "Innovation and Skills" objective as it concerns investments, mostly in cohesion regions, in advanced technologies targeting increased competitiveness and energy efficiency. The project will lead to the development and deployment of innovative process technologies with substantial environmental benefits and knowledge externalities. The investments therefore address market gaps associated with imperfect competition and incomplete markets for very innovative process technologies. The project will have a positive effect on employment, by contributing to the continuous development and upskilling of the company's manufacturing resources. The Bank's technical contribution and advice benefited the borrower providing a guidance to align and define the multi-location project scope with policy objectives and monitoring requirements, given the associated sector risk. Over recent years, the promoter, who is a first time borrower to the Bank, has become progressively more autonomous from the rest of the Group, which implies a need for a regional debt funding for its European capex. The EIB loan will become an important element of this diversified regional funding. Moreover, the EIB's financial contribution derives from the Bank's ability to provide financing, on favourable terms, aligned with the project's cash flows, including in particular the long tenor and long availability period, and flexible drawdown conditions. The proposed loan is expected to enable the client to crowd in complementary financing sources.

The project is expected to deliver product and process related environmental benefits due to the introduction of high performance tyres with low rolling resistance and more efficient and flexible production technologies.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.