Cikautxo, a Spanish company specialising in plastic and rubber components for the automotive sector, is to receive a €26 million European Investment Bank (EIB) loan.
The EIB loans, also known as the 'Juncker Plan' after the European Commission President, will help Cikautxo in development of lighter electric and hybrid car parts and also boost research and development in fuel efficiency.
The loan is also to be used in helping the company in boosting production capacity in its Biscay region facilities in Spain, as well as at its sites in Czech Republic, Romania and Slovakia.
EIB Headquarters
EIB Headquarters in Kirchberg, Luxembourg. Source: EIB
Cikautxo cites its main objectives are pollution prevention and environmental protection. The company's clients include household names such as Aston Martin, Audi and Porsche, providing anti-vibration, fluid conduction and sealing solutions for the automotive sector. They also produce gaskets for household appliances and rubber compounds for use in sports.
Part of the Mondragón Corporation and an industrial cooperative, Cikautxo intends to implement more sustainable production processes, allowing for the development of new and innovative products which help in the manufacture of less polluting vehicles. The €26 million finance contract was signed by EIB Vice-President Emma Navarro and Cikautxo Managing Director Iñigo Laskurain.
Jyrki Katainen, EU Vice-President, who has responsibility for Jobs, Growth, Investment and Competitiveness, said: "Electric cars are crucial for the transition towards a more sustainable Europe. This €26m EFSI-backed loan to Cikautxo to develop innovative products for electric and hybrid cars is helping to put the EU at the forefront of clean transport. Thanks to the support of the Investment Plan, hundreds of jobs will be created in Spain and regional development will be supported in Czechia, Romania and Slovakia."
At the signing ceremony at the Cikautxo headquarters in Berriatua, Biscay, Ms Navarro said: “the dual economic and environmental impact of this agreement, which demonstrates the EIB's dedication to supporting the future of businesses needing major investment in innovation to ensure their competitiveness and keep growing. It also shows our firm commitment to economically and environmentally sustainable growth via support for more efficient production processes and assistance for developing technologies to secure a leading role for Spain and Europe in a more environmentally friendly automotive industry.”
Mr Laskurain added: “the importance of this operation, which will enable the cooperative to continue investing in new products and solutions to guarantee its leading position in the areas where it is already a European and global reference point.”
By the end of 2018, the Juncker Plan had mobilised over €375 billion in investments and had given support to over 858,000 small and medium enterprises.
Relative to GDP, Spain is the fourth largest beneficiary of the Juncker Plan. Over €8 billion of loans is set to trigger more than €46 billion of investments inside the country.
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