MOSCOW (MRC) -- Covestro has agreed a loan with the European Investment Bank (EIB) for EUR 225 million, said the producer in its press release.
The loan will provide medium term funding to strengthen Covestro’s research and development (R&D) work in the areas of sustainability and circular economy within the European Union (EU).
Discussions with EIB started already in 2019 to identify R&D projects which would be compatible with the financing requirements of the EIB. These require that funding is applied to projects which meet high standards of technical, ecological and social responsibility.
"The core of our R&D activity is innovation" said Dr. Thomas Toepfer, CFO of Covestro. "This loan provides us with additional financial flexibility to push forward our strategic focus in the areas of sustainability and the circular economy."
EIB Vice-President Ambroise Fayolle, responsible for the bank's operations in Germany and innovation, said: "In times when Member States and EU institutions are putting in place multi-billion euro programmes in response to the crisis caused by COVID-19, it is also important to demonstrate that we are continuing our regular business in support of companies. I am therefore very pleased that we have just signed this loan with circular economy pioneer Covestro, as support for the climate and environment is among the EIB's top priorities."
In autumn 2019, Covestro published a global strategic program to establish the theme of circular economy throughout all areas of the company. The main principles are to improve recycling from plastic waste, alongside the development of innovative technical and production methods in the use of alternative raw materials.
The EIB loan provides a further commitment of Covestro to sustainability. It complements the recently renewed syndicated revolving credit facility of EUR2.5 billion, whose interest rate is linked to the company’s Environment, Social Governance (ESG) rating.
As MRC reported earlier, Covestro successfully closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.
According to MRC's DataScope report, overall imports of PC granules to Russia (excluding shipments from Belarus) grew in the first month of 2020 more than by 3 times year on year to 2,590 tonnes. Imports of material into the country were 740 tonnes in January 2019. December 2019 imports of material to Belarus reached 2,850 tonnes. Sabic Innovative Plastics and Covestro were the main import suppliers of PC granules. Both producers significantly increased their shipments in the first month of the year. Thus, imports of Sabic's material grew from 400 tonnes (5% of the total imports) in January 2019 to 1,590 tonnes (62% of the total imports). Covestro's shipments also rose significantly - to 770 tonnes from 580 tonnes (excluding Belarusian imports) a year earlier.
With 2019 sales of EUR 12.4 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 17,200 people (calculated as full-time equivalents) at the end of 2019.
MRC