EIB and Otua Group Partner to Drive Circular Economy in Spain with €40 Million Investment

EIB and Otua Group Partner to Drive Circular Economy in Spain with €40 Million Investment

(IN BRIEF) The European Investment Bank (EIB) and Otua Group have collaborated on a €40 million loan to facilitate the construction of a new recycling plant for automotive waste plastics and the upgrade of existing metal waste processing facilities. This initiative, supported by the InvestEU programme, aligns with the EU Circular Economy Action Plan and Spain’s Circular Spain 2030 strategy. The investment aims to promote the transition to a circular economy by recovering reusable materials from automotive waste, reducing landfill usage, and contributing to decarbonizing waste management. The project underscores the EIB’s commitment to efficient waste management and job creation while fostering sustainability and supporting the green transition.

(PRESS RELEASE) LUXEMBOURG, 6-Mar-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Basque Country-based Otua Group have signed a €40 million loan to finance the construction of a new plant for recycling plastics from automotive waste and to upgrade existing facilities for processing metal waste.

The EIB loan promotes the transition to circular economy – in which industrial materials get reused rather than discarded – by helping to cover the high upfront costs and long investment-recovery periods typical of such waste-management projects. The financing was made possible by InvestEU programme support.

“The loan signed with Otua is yet another example of how the EIB promotes efficient waste management and job creation, helping to develop the circular economy set to play a key role in the green transition,” said Antonio Lorenzo, head of the EIB’s Corporate Lending in Spain Division. “Making these waste- management plants operational involves meeting very specific financing needs, which the EIB can do very well.”

The construction of the new Otua plant and the purchase of advanced recycling equipment will enable the recovery of high-quality secondary raw materials, stop recyclable waste from ending up in landfill and help decarbonise waste management. The project is in line with the goals of the EU Circular Economy Action Plan and will contribute to the Circular Spain 2030 national circular economy strategy, as well as the Basque Country 2030 waste prevention and management plan.

“The signature of this major loan with the EIB is a milestone in the history of our company,” said Otua Chief Financial Officer Amaia Trebiño. “This agreement will help us to achieve one of our strategic goals, namely improving the circularity of plastic materials from out-of-use vehicles and therefore increasing their sustainability. We are pleased to receive this EIB support, which will enable Otua to play an active role in solving a problem affecting the future of the planet.”

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It also helps mobilise additional investment to back EU policy priorities, such as the European Green Deal, the digital transition and supporting small and medium-sized businesses. InvestEU brings together under one roof the multitude of EU financial instruments helping to make funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. This guarantee will increase their risk-bearing capacity of the financial partners and aims to mobilise at least €372 billion in additional investment.

Otua

Otua is a Basque Country-based industrial group with more than 50 years of experience in recycling, research and distribution.

With over 250 000 m2 of recycling space, this European leader offers an integrated service covering all phases of recycling from obtaining and evaluating waste to its recovery. Looking ahead to 2030, Otua is facing a new challenge: Combating the current volume of out-of-use vehicle waste.

With the help of the InvestEU programme, Otua is set to build a new plant, creating 40-50 new jobs and providing up to 200 indirect positions, 24 000 tonnes of recyclable plastics and 55 000 tonnes of refuse-derived fuel with reduced chlorine. In this way, the company will help to improve vehicle sustainability, reducing the use of fossil-based raw materials and CO2 emissions involved in manufacturing virgin plastics.

Media Contact:

Maite Cordero
m.corderomunoz@eib.org
+34 606 66 82 62

Jose Vicente Alzola
j.alzola@ext.eib.org
+352 4379 – 72859

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank