Valmet Automotive strengthens its working capital financing with a EUR 100 million loan granted by Finnvera, a specialized financing company owned by the State of Finland, and guaranteed by the European Investment Bank’s Pan-European Guarantee Fund. The credit demonstrates the financial sector’s confidence in Valmet Automotive’s business strategy and growth, and it supports the company’s development plans and green transition.
At Valmet Automotive, the need for short-term working capital financing is partly related to the pandemic and its impact on supply chains and production. With a credit period of 4 years, the financing will also support the company’s strategic policies, such as product changes and especially the expansion of operations to meet the needs of e-mobility.
In Valmet Automotive’s strategy, all business lines emphasize sustainability and electrification of mobility. Besides the historic change in the automotive industry, the electrification trend is now opening opportunities also in other industrial sectors. Valmet Automotive estimates that EV Systems will become its leading business line in terms of turnover in a few years.
– The development of Valmet Automotive’s operations and the strengthening of our position in the current, highly dynamic business environment require strong working capital financing. The loan granted by Finnvera is an important contribution to us, says Juha Torniainen, CFO, Valmet Automotive.
Finnvera is granting working capital and investment loans under the EGF guarantee program. The guarantee scheme is intended for medium-sized and large companies that go beyond the EU definition of an SME.
Additional information:
Mikael Mäki, Manager, Corporate Communications, Valmet Automotive
+358 50 317 4308
mikael.maki@valmet-automotive.com
Image bank available at https://www.valmet-automotive.com/media/
www.valmet-automotive.com
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The Valmet Automotive Group is one of the largest vehicle contract manufacturers in the world, Tier 1 systems supplier for convertible roof systems and for battery systems. In its strategic development, Valmet Automotive Group focuses on electromobility with the development and manufacturing of battery modules as well as packs for electrified vehicles. The activities in the group are organized in three business lines: Manufacturing, EV Systems and Roof & Kinematic Systems. Since its founding in 1968, Valmet Automotive has produced more than 1.7 million vehicles at the Uusikaupunki, Finland plant. Valmet Automotive operates two battery plants in Salo and Uusikaupunki. A third battery plant in Kirchardt, Germany, will start production in 2022. The company has locations in Finland, Germany and Poland. Valmet Automotive’s largest shareholders are state-owned Finnish investment company Tesi and the Pontos Group, each with a stake of 38.46 %. 23.08 % is held by the Chinese Contemporary Amperex Technology Limited (CATL), the world leading manufacturer of battery cells for electric vehicles.