Brussels, 21/01/2010 (Agence Europe) - On Thursday 21 January, the European Investment Bank (EIB) announced its decision to lend €400 million to Ford Romania S.A. for the expansion and refurbishment of the company's existing car assembly plant located in Craiova in the south-west of Romania. The Republic of Romania is providing a state guarantee for 80% of the loan under the European Commission's temporary framework for state aid measures, which gives member states additional scope to facilitate access to financing in the present economic and financial crisis.
The EIB loan will finance investments in the Craiova Ford plant for the facilities and tooling needed for the production of a new B-segment vehicle, with production starting in the near future, and production of the existing model of the light commercial vehicle and a new model scheduled to be launched later. EIB funds will also help to introduce the production of a new small, advanced-technology petrol engine with low fuel consumption. It is envisaged that expanded production capacity will represent an annul output of up to 300,000 vehicles and 300,000 engines.
The EIB has also, in principle, approved a loan of €200 million that will finance research, development and innovation towards the development of vehicles and engines to be produced in the Craiova plant. However, these activities will be carried out in Ford's facilities located mainly in Germany.
The vehicles and engines to be manufactured in the Ford Craiova plant will incorporate the latest safety (EURO NCAP 5), environmental (EURO 5 stage) standards and other new technology features and will support Ford in going beyond compliance with the EU regulation concerning CO2 emissions. (O.L./transl.jl)