Remscheid, 28. September 2022
The €120 million loan supports the company`s transition towards electric heat pumps and improved energy efficiency.
The EIB loan is strictly linked to environmental criteria.
The European Investment Bank (EIB) provides a loan of €120 million towards the heating systems manufacturer Vaillant Group, supporting the company`s ongoing investments into research, development and innovation related to modern heating technologies. The project will be implemented primarily at the Vaillant Group headquarter in Remscheid, Germany, and include investments in other EU countries, such as France, Spain and Slovakia.
The Vaillant Group, founded in 1874 and fully family-owned ever since, is the global market leader in central heating units and drives its own transformation into a leading supplier of electric heat pumps at a high pace. The company has already invested €300 million in 2021 - primarily in new, environmentally friendly technologies. In the coming years, investments will also be at this level. Through the loan of €120 million the EIB supports the company’s ambitious transition. In each of the past two fiscal years, the company increased its heat pump sales by more than 50 percent.
The heating technology industry is going through a transformation driven by government regulation, digitalization and changing customer requirements. Following the effects of climate change and the ongoing discussion about the supply of natural gas in the light of the war in Ukraine, European governments are now increasingly supporting the electrification of the building sector. In Germany, in the first half of 2022, the overall sale of heat pumps has already increased by 25 percent compared to the same period 2021.
The EU-bank generally expects positive environmental spill overs through products with enhanced energy efficiency and lower consumption of fossil fuels. The project therefore is fully in line with the bank`s and the EU’s climate goals.
EIB`s Vice President Ambroise Fayolle, who oversees activities in Germany, said: “We are proud to support the transformation of Europe`s heating systems industry via this financing to the Vaillant Group. Projects like this will help to decrease Greenhouse-Gas-emissions in the building sector which as of today is responsible for one fifth of overall emissions.”
“We have set a clear course to become a leading supplier of environmentally friendly heat pumps. With the EIB loan, which is linked to strict environmental criteria, we have an even greater financial scope to accelerate our transformation in line with our ‘green’ and ESG-linked financing strategy”, said Vaillant Group CFO Dr Stefan Borchers.
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 goals. The EIB`s activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion. The EIB works closely with other EU institutions to foster European integration, promote the development of the EU and support EU policies in over 140 countries around the world.
The Vaillant Group is an internationally active company based in Remscheid, Germany, which operates in the fields of heating, ventilation and air-conditioning technology. As one of the global market and technology leaders, the Vaillant Group develops and manufactures customised products, systems and services to provide a comfortable living environment. Its product portfolio ranges from efficient heating devices based on conventional energy sources to system solutions for using renewable energy. In the financial year 2021, the company, which has been family-owned since its foundation in 1874, generated sales of around 3.3 billion euros with its workforce of about 16,000.