Authorities at the EC have backed a EUR26m (US$30m) European Investment Bank (EIB) loan to Spanish company Cikautxo, specialised in rubber and plastic components for the automotive sector.

The financing will help the company develop lighter car parts for electric and hybrid cars and boost research and development activities in fuel efficiency.

The loan will also help the company increase production capacity at its Spanish facilities, in the province of Biscay, as well as at its Czech, Romanian and Slovak sites.

“Electric cars are crucial for the transition towards a more sustainable Europe,” said EC vice president, Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness.

“This EUR26m EFSI-backed [European Fund for Strategic Investments] loan to Cikautxo to develop products for electric and hybrid cars is helping to put the EU at the forefront of clean transport.

“Thanks to the support of the Investment Plan, hundreds of jobs will be created in Spain and regional development will be supported in Czech Republic, Romania and Slovakia.” 

Spain is the fourth largest beneficiary of the Investment Plan for Europe relative to GDP, with EUR8bn of EFSI financing to trigger more than EUR46bn of investments.

As of end of 2018, the Plan had mobilised EUR375.5bn of investment across Europe and supported 858,000 small and medium businesses.