- The project will be part of the company`s shift to become a climate neutral chemicals organisation
- Financing by EU bank is backed by a guarantee from the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe
The European Investment Bank (EIB) will provide €290 million to the German company Wacker Chemie AG. Wacker is a technological leader in the chemical industry and manufactures products for a wide range of key global industries. It is active in the silicone, polymer, life sciences and polysilicon markets. The financing of the EU bank, backed by the Investment Plan for Europe, will support Wacker’s research and development programme with a strong focus on sustainability and energy efficient economy. In line with the main objectives of the EIB, being one of the world’s main financers of climate action, the financing will assist Wacker Chemie in reaching its sustainability goals, inter alia a 33% reduction in CO2 emissions by 2030 and to become fully carbon neutral by 2050. The new loan has a term of five years from the date of its drawing.
Wacker is a well-known and long-term client to the EU Bank. While the first cooperation between Wacker Chemie and the EIB took already place in 2003, the current financing is the sixth transaction, underpinning the succesfull relationship between Wacker Chemie and the EU Bank over the last 17 years.
The current funding of EIB is provided under the guarantee scheme of the European Fund for Strategic Investments (EFSI). EFSI is the central pillar of the Investment Plan for Europe under which the EIB and the European Commission are working together as strategic partners and the EIB’s financing operations are boosting the competitiveness of the European economy.
European Commissioner for the Economy, Paolo Gentiloni, said: “The agreement, backed by the Investment Plan for Europe, is a clear example of how the EU supports businesses in their transition towards a sustainable and circular economy. The new financing will bolster Wacker Chemie’s innovation and sustainability strategy, help reduce its CO2 emissions and put it on track to reach full climate neutrality by 2050, in line with our EU climate objectives.”
EIB Vice-President Ambroise Fayolle, who is responsible for EFSI and the bank´s operations in Germany, said: “One of the key operational aims for the EIB is to finance projects directly promoting the Union’s environmental policies. Therefore I am delighted that we, the bank of the EU, has signed this new transaction with Wacker Chemie, a well-known and trusted partner for us. The project will help Wacker to push further into a more regenerative/circular mode of operation and accelerate the development of much needed renewable materials to feed a new circular economic system.”
Wacker Chemie AG’s Senior Vice President Finance Frank Reinhardt said: “This new project is another milestone in our long-standing and fruitful cooperation with the EIB. We value the EIB as a reliable and professional partner whose support provides us with important building blocks for our long-term financing strategy.”
Background Information
The Investment Plan for Europe is an EU initiative to boost investment and to create jobs and growth. Through guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the EIF are able to take on a higher share of project risk, encouraging private finance providers to participate in the projects. The projects and agreements approved for financing under the EFSI so far are expected to mobilise €535.4 billion in investments and support more than 1.4 million start-ups and SMEs across all EU Member States.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Wacker Chemie AG is a globally active speciality chemicals company. The company’s product portfolio covers over 3,200 products, which are used in a range of applications, from tile adhesives to solar cells. Wacker serves a diversified group of customers, operating across several industries (including construction, automotive, electrical, engineering, electronics, solar, textile, food, consumer goods, medical technology and biotech). Wacker operated 24 production sites worldwide with almost 15k employees in 2019.
