Juncker Plan: EIB supports Portuguese car interiors manufacturer TMG’s growth and innovation strategy - Hoofdinhoud

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  The EU i bank will provide a EUR 25m loan to TMG Automotive to promote innovative and sustainable processes and increase its production capacity
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  The investment plan will be implemented in the District of Braga and will create 160 new jobs

From being an abandoned textile factory to become an innovative plant that will be able to produce automotive materials, using state of the art technologies. The transformation will be possible thanks to a EUR 25 million loan granted by the EIB i to TMG Automotive. The agreement, signed in Braga, north of Oporto, by EIB Vice-President, Emma Navarro, and TMG‘s CEO, Isabel Furtado, is backed by the European Union budget guarantee under the European Fund for Strategic Investments (EFSI) i, the main pillar of the Investment Plan for Europe, known as the “Juncker Plan”.

This agreement will foster a more innovative and sustainable car industry in Portugal. TMG will use the financing to implement its research and innovation strategy, focused on using new technologies that reduce the environmental impact of the processes to produce automotive textiles. The roll out of new car interior solutions will also reduce the weight of vehicles, which in turn will contribute to a decrease of fuel consumption and pollutant emissions.

Thanks to the EIB support, TMG will refurbish and enhance its industrial buildings located in the District of Braga, thus boosting economic growth in a cohesion region. With the aim to be ready to compete in a highly demanding industry, and to meet future market demands, the company will also expand its production capacity. The investment program will promote the sharing of knowledge within the European car industry, where TMG is a leading player in the production of automotive components.

The support of the Juncker Plan allows the EIB to provide the company with long term and flexible financing that will accelerate the implementation of the strategy. The Investment Plan for Europe enables the EIB Group to expand its capacity for financing investment projects with high added value that, in the case of this agreement, is to promote sustainable economic growth, innovation and cohesion. The programme will be implemented up to 2020 and will help to safeguard quality jobs: TMG Group currently has currently 1400 workers and will create 160 new jobs in its recent Automotive plant.

European Commissioner for Research, Science and Innovation Carlos i Moedas said: "This is the Juncker plan at its best: giving a company the financial boost it needs to expand, use more environment-friendly processes, innovate and create jobs for local communities, especially in those regions that need it most. With this new deal, Portugal continues to lead as one of the biggest beneficiary of the Juncker Plan."

At the signing ceremony held in Braga EIB Vice-President Emma Navarro said: “We are delighted to support a project that will foster innovation investment, economic growth and creation of highly qualified employment in Portugal, while contributing to a less pollutant and more efficient car industry in Europe. This agreement demonstrates our firm commitment to supporting mid-sized companies operating in highly competitive environments, in sectors that are key for the European economy.”

TMG‘s CEO, Isabel Furtado, explained that “as a member of the UN Global Compact, TMG Automotive is highly committed to its ten principles, with focus on human rights, labour, environment and anticorruption, as well as supporting the United Nations Sustainable Development Goals. Aligning human rights with sustainable economic growth and environment protection is crucial for the future of TMG Automotive”.

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 objectives.

The Investment Plan for Europe, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.

The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise more than EUR 360 billion in investment, including 8.8 billion in Portugal, and support 850 000 SMEs in the 28 Member States.

More on the EIB in Portugal here.

Climate action: As the largest multilateral provider of climate finance worldwide, we are committing at least 25% of our investments to climate change mitigation and adaptation, supporting low-carbon and climate-resilient growth. See more on the EIB contribution to climate action here.