The European Investment Bank (EIB) is lending EUR 120 million to KTM AG, an Austrian motorcycle manufacturer. The financing of the EU bank will support KTM´s investments in research, development and innovation (RDI). The EIB loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI). EFSI is an essential pillar of the Investment Plan for Europe – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners and the EIB’s financing operations are boosting the competitiveness of the European economy.
In particular, KTM will use the fresh financing to strengthen RDI in the fields of electrical propulsion systems, cooperative intelligent transport systems and lightweight design. In addition the EU support will go to RDI of advanced materials and technologies for motorcycles as well as to future urban mobility concepts. The investments will be carried out primarily in KTM´s R&D centre located in Mattighofen (Austria) in the period 2018-2020.
Commissioner for Transport Violeta Bulc said: “Road transport is at a cross-road and connected, cooperative, automated and autonomous driving will shape road mobility in the years to come, the way motor vehicles did in the last century. It will make mobility safer, cleaner, inclusive and smart. Today’s agreement, backed by the Juncker Plan, is a valuable contribution to a strong and competitive European transport industry that creates jobs and gives an innovation boost to the entire economy.”
EIB Vice-President Andrew McDowell, who is responsible for operations in Austria at the Bank, underlined: “Research, development and innovation are key ingredients for ensuring sustainable growth and creating high-value jobs. For the EIB, this is a top priority. Therefore I am delighted to continue our excellent and constructive cooperation with KTM. The company is a leading European player in the high quality off-road and street-legal motorcycle segments and KTM is the leading global off-road brand. The new investments are crucial for KTM to keep its position as an innovation leader in the global motorcycle industry.”
Viktor Sigl, CFO of KTM AG: “Research and development is a top priority to us and represents a significant investment for the future of KTM’s growth strategy and its ongoing development. In EIB, KTM has found a long-standing and reliable partner to support these investments with the corresponding financing. KTM values this collaboration and the strong partnership.“
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Source: European Commission
