SAPA INNOVATIVE & SUSTAINABLE VEHICLE COMPONENTS

The project concerns the promoter's investments for Research, Development and Innovation (RDI) activities in the field of advanced, lighter, recycled/reused and recyclable materials and associated process technologies, as well as capital expenditures for the digitalisation and modernisation of existing European production sites in the period 2021-2024. The investments will be carried out at the company's facilities in Italy and Poland.

The project is expected to support the Promoter's growth and the development of new products through Research, Development and Innovation (RDI) activities. Moreover, the capital investments target the modernisation of the installed production capacity at the promoter's existing sites.

The project concerns the promoter's investments for the development and deployment of advanced materials, manufacturing and digitalisation technologies, it will bring about positive environmental externalities and will support the further accumulation and diffusion of knowledge and workforce upskilling and training. It contributes to the Bank's "Innovation, Digital and Human Capital" policy objective, a part of it to the Bank's Economic and Social Cohesion and the Climate Action and Environmental Sustainability policy objectives. EIB financing supports the promoter's investments addressing the market failures and gaps associated with imperfect competition and those addressed by projects with positive knowledge and environmental externalities generation.

This project will help the promoter to further acquire and develop relevant skills and competences, strengthen its technology edge, enhance its product portfolio, and will uphold and further the promoter's long term sustainable competitiveness and profitability.

It will add to the social welfare and bring about social benefits, environmental externalities, contribute to further employment opportunities and existing workforce upskilling and training. The promoter's R&D and manufacturing capability and experienced management will help implement a sound and sustainable project, integrating relevant positive environmental and social dimensions, and will contribute to address and mitigate market failures, and through its additionality, the Bank's policy objectives.

In terms of the EIB contribution, the proposed operation satisfactorily meets the required funding needs of the promoter as it provides for the necessary flexibility in terms of long tenor and repayment profile, together with a sizeable financing volume. The EIB funding is expected to improve the promoter's financial profile by diversifying its funding base. The Bank's technical contribution and advice focused on aligning project scope with policy objectives at origination and on the monitoring during project implementation.

Research, Development and Innovation (RDI) activities on injection moulded automotive components and the associated manufacturing are not listed in the annexes of the EIA directive 2011/92/EU amended by directive 2014/52 EU; therefore, the project is not subject to the EIA directive. The Bank's services will review the environmental aspects of the project during the due diligence process. The results of this project are expected to contribute to the development of a more sustainable European transport system, through the development and deployment of lightweight metal components and components for electric vehicles, as well as energy- and resource-efficient manufacturing 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. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.