The European Investment Bank announced this past week that it is providing EUR 25 million to improve the efficiency and competitiveness of the company.

The European Investment Bank (EIB) is lending EUR 25 million to Navigator Co. to upgrade the enterprise’s pulp mill in Cacia, Aveiro (Portugal). This EIB financing operation will contribute to the modernization and expansion of the plant to increase its efficiency and production with a view to achieving a 20% rise in annual output. At the same time, this project will help to improve the plant’s environmental performance through greater use of renewable energy.

This EUR 25 million loan will also foster new employment in a cohesion region. The project in Cacia will have a very positive impact on the creation of direct and indirect jobs in the Baixo Vouga area: each job at the plant generates a further eight jobs in the region. The EIB funds will also support regional rural economies: the upgrading of the pulp mill will help to create employment in the upstream pulp wood supply chain and forestry.

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

EIB VP Román Escolano and Navigator Co. CEO Diogo da Silveira met today in Lisbon. Escolano underlined the positive effects of this project on the region’s economy: "This investment in Portugal will contribute to increasing the efficiency and competitiveness of the Cacia plant while, at the same time, improving its environmental sustainability. The modernization of the pulp mill will help to safeguard and create employment in Aveiro".

Diogo da Silveira, CEO of Navigator Co., pointed out the importance of the EIB’s support to a leading Portuguese and European company: "This agreement between EIB and NVG will allow our company to continue on its path of sustainable growth in Europe."