European Investment Bank Provides €250 Million Financing to Nexans

Strategic Insights -

The European Investment Bank (EIB) has provided Nexans, a global leader in cable system design, manufacturing, and associated services, with €250 million in financing to support its research, development, and innovation programmes for 2024-2029. The loan will enable Nexans to speed up its investments in its research and development programme, as well as in its cable production and copper recycling capacities, optimising the use of raw materials and developing the circular economy. This financing is part of the EIB's support for REPowerEU, the programme to strengthen the European Union's energy autonomy.

Key Takeaways:

  • The loan of €250 million will support Nexans' research, development, and innovation programmes for 2024-2029, with a focus on expanding its production capacity, bolstering copper recycling, and innovating to back the energy transition and European industrial autonomy.
  • The funding will enable Nexans to accelerate its industrial and innovation strategy to make Nexans a key player in sustainable electrification in Europe.
  • Nexans plans to invest in several projects, including the construction of a new factory in Lens, which will increase copper wire production by more than 50% and recycle up to 80,000 tonnes of copper a year.
  • The company will also strengthen its sites in Charleroi, Erembodegem, and Calais, and expand its capacity at the Bourg-en-Brese site to meet growing electrification demand in France and across Western Europe.
  • The financing is fully in line with the REPowerEU programme and will support Nexans' activities in promoting electrification and decarbonisation at all levels from production to end use.
  • The loan is structured over two contracts, including a €190 million loan with a guarantee under the InvestEU programme, which backs innovation, sustainability, and competitiveness in strategic sectors of the EU economy.
  • The operation is also aligned with the REPowerEU programme due to the importance of Nexans' activities in promoting electrification and decarbonisation at all levels from production to end use.

Statistics:

  • €250 million: the amount of financing provided by the European Investment Bank to Nexans.
  • 2024-2029: the timeframe for Nexans' research, development, and innovation programmes that the loan will support.
  • 50%: the increase in copper wire production that the construction of a new factory in Lens will enable Nexans to achieve.
  • 80,000 tonnes: the amount of copper that Nexans plans to recycle annually at the new factory in Lens.
  • €190 million: the amount of the loan with a guarantee under the InvestEU programme that will back Nexans' research, development, and innovation programmes.
  • €60 million: the amount of the second loan that comprises the remainder of the financing.
  • 140 years: the history of Nexans, which has been in operation since its founding.
  • 28,500: the number of employees that Nexans has globally.
  • €7.1 billion: the standard sales generated by Nexans in 2024.
  • 2050: the target year for Nexans to achieve net zero emissions, aligned with the Science Based Targets initiative (SBTi).

Sources:

  • European Investment Bank (EIB)
  • Nexans
  • InvestEU programme
  • Science Based Targets initiative (SBTi)
  • European Union
  • Euronext Paris
  • Compartment A