GASCOGNE PAPER FACTORY

The project comprises the construction of a new paper machine as well as the building and the industrial facilities for the production of specialised paper aimed at replacing three of the Group's ageing paper machines in Mimizan, South West France.

The new paper machine, based on cutting-edge technology, is expected to reduce the environmental footprint of the operations together with bringing an increase in efficiency. This investment will be pivotal in securing the long-term sustainability and competitiveness of Gascogne Group. It will generate innovation, knowledge and skills in the bioeconomy. Through anticipated spill-over effects towards the local and regional economy in a predominantly rural area of France, the project is further contributing to territorial integration within the EU through rural development. Last but not least, it will enable Gascogne Group to continue providing a stable local market outlet for private and public forest owners, thus supporting sustainable management of the Aquitain forest block.

The project's economic and social cohesion as well as environmental benefits would not be achieved to the same extent without the Bank's support. This is because the long investment payback period would not be sufficiently attractive to private investors. The tenor of the EIB loan exceed the conditions available on the domestic financial market, and the signaling effect of the Bank's support for the project will help unlock additional financing. Consequently, the Bank's involvement is expected to support a project that contributes to territorial integration within a cohesion region, climate mitigation, efficient use of natural resources and circular economy, in support of EU policy objectives.

The project is aligned with the EU Green Deal, Climate Action objectives, the EU Forestry and Bioeconomy strategies, and the EU Circular Economy action plan. The appraisal team understands that the project may fall under the scope of Annex I of the EIA Directive 2014/52/EU, amending the EIA Directive 2011/92 and be subject to a full environmental impact assessment (EIA) process including public consultations. The environmental permitting will be addressed thoroughly during the appraisal.

Although the Promoter is a private company not operating in the utilities sector, and is thus not covered by EU directives on procurement, the Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the relevant applicable EU procurement rules.