ANNOUNCEMENT 25 Oct 2018

In October 2018, the European Investment Bank (EIB) signed a loan agreement with Eramet SA to support its investments in advanced manufacturing and digitisation as well as research and development activities. The loan will be guaranteed by the European Fund for Strategic Investment (EFSI).

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Investment Bank, Financed Projects, ERAMET R&D AND DIGITALISATION INVESTMENTS: http://www.eib.org/en/projects/loan/loan/20180261
The European Investment Bank, Project summary, Project No. 20180261, ERAMET R&D AND DIGITALISATION INVESTMENTS: http://www.eib.org/en/projects/pipelines/pipeline/20180261
The European Investment Bank, EFSI Operation Scoreboard, 18 September 2018: http://www.eib.org/attachments/scoreboards/87235480.pdf
Eramet SA: http://www.eramet.com/
European Commission (13 January 2015): The Investment Plan for Europe: Questions and Answers: http://europa.eu/rapid/press-release_MEMO-15-3223_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at: http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf

Inception date: 25 Oct 2018 | Removal date: open ended

State loan

The loan agreement between the European Investment Bank (EIB) and Eramet SA was signed on 25 October 2018 and has a total value of EUR 120 million (approx. USD 136.5 million).

The loan will support the company's project concerning investments in advanced manufacturing and digitisation as well as research and development activities. R&D activities will focus on product development and efficiency improvement of alloy manufacturing and mining operations. The investments in advanced manufacturing will support the company's digital transformation.

In this context, the EIB noted that the aim of the project is to increase the company's: "... knowledge and know-how in the field of metal technology, new materials and alloys as well as to improve the energy efficiency and environmental impact of the promoter's extraction, metallurgical and transformation processes."

According to the EIB, these activities are: "... expected to contribute to increasing the technological competence and leadership of the European metallurgy industry and therefore the sustainable growth and employment in Europe."

Eramet SA is mining and metallurgical company with activities in the area of alloy metals with a particular focus on manganese and nickel. The company has its headquarters in France with operations in more than 20 countries around the world.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory. 

AFFECTED SECTORS

 
Inception date: 25 Oct 2018 | Removal date: open ended

Loan guarantee

The loan agreement signed on 25 October 2018 between the European Investment Bank (EIB) and Eramet SA will be guaranteed by the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 120 million (approx. USD 136.5 million). The loan will support the company's investments in advanced manufacturing and digitisation as well as research and development activities.

Eramet SA is mining and metallurgical company with activities in the area of alloy alloying metals with a particular focus on manganese and nickel. The company has its headquarters in France and has operations in more than 20 countries around the world.

EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.

As described in the European Commission's Fact Sheet from 13 January 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative [i.e. the EFSI] will benefit from the EIB’s strong credit standing that enables funding at favourable conditions and across maturities".