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European Investment Bank grants Euro 25 million loan for upgrade of The Navigator company’s Cacia pulp mill in Portugal

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European Investment Bank grants Euro 25 million loan for upgrade of The Navigator company’s Cacia pulp mill in Portugal

July 08, 2016 - 07:51

LUXEMBOURG, July 8, 2016 (Press Release) -The European Investment Bank has provided funds for EUR 25 million to improve the efficiency and competitiveness of the company.

The European Investment Bank (EIB) has lent EUR 25 million to The Navigator Company to upgrade the company’s pulp mill in Cacia in Aveiro. This EIB financing has allowed the modernization and expansion of the plant to increase its efficiency and production, allowing a 20% increase in its annual output. At the same time, this project contributes to improve the plant’s environmental performance increasing the use of renewable energy.

This EUR 25 million loan will also foster new employment in a cohesion region. The project in Cacia has a very positive impact in the creation of direct and indirect jobs in the Baixo Vouga area: each job at the plant, contributes to the existence of 8 jobs in the region. These EIB funds are also supporting regional rural economies: the upgrading of the pulp mill has contributed to create employment in the upstream pulp wood supply chain and forestry.

Replacing fuel oil by natural gas at the Cacia mill will increase the plant’s capacity while saving greenhouse-gas emissions. It will be more environmentally friendly since its current technologies will be upgraded to comply with the best available emission abatement technologies. In addition, the Cacia pulp mill will only use biomass from forests that are certified by internationally accredited forest certification systems.

EIB Vice-President Román Escolano and The Navigator Company CEO Diogo da Silveira have met today in Lisbon. EIB Vice-President Román Escolano has underlined the positive effects of this project on the economy of the region: “This investment in Portugal is contributing to increase the efficiency and competitiveness of the Cacia plant while improving, at the same time, its environmental sustainability. The modernisation of the pulp mill contributes to safeguard and create employment in Aveiro”.

Diogo da Silveira, CEO of The Navigator Company, mentioned the importance of the support of the EIB to a Portuguese and European leader Company: “This agreement between EIB and NVG will allow our Company to continue its sustainable path of growth in Europe”.