Sweden: Industrial equipment maker SKF to accelerate Europe’s green transition with €430 million loan from EIB

• SKF gets €430 million EIB loan to boost research and innovation in bearings, seals and lubrication technologies
• Focus on renewable energy and electric mobility
• Projects to be carried out in six European countries

The European Investment Bank (EIB) is lending €430 million to Sweden-based SKF, a global leader in bearings and seals manufacturing, to support research, development and innovation (RDI) central to greening Europe's economy. The company will use the EIB credit to advance technologies in bearings, seals and lubrication systems over the coming four years at sites in six European countries: Austria, France, Germany, Italy, the Netherlands and Sweden.

The RDI by SKF, which was founded in 1907 in the western Swedish city of Gothenburg, will target sectors such as electric traction for railways, wind energy and low-carbon technologies including hydrogen systems and heat pumps.

"This loan underscores our commitment to supporting innovation for a greener future," said EIB Vice-President Thomas Östros. "As a driver of technological progress for over a century, SKF conducts advanced research in bearing and seal technologies that is crucial for renewable energy and electric mobility, aligning with our shared vision for a sustainable Europe."

The loan aligns with the EIB's goal to promote sustainable development and green technologies, contributing to the EU's climate-action and environmental- sustainability objectives. The credit also supports European policies such as Horizon Europe, the EU's flagship funding programme for research and innovation, and the REPowerEU plan to accelerate Europe's switch to renewable energy from fossil fuels.

The SKF activities to be covered by the EIB loan include materials research, product design, advanced manufacturing processes, digitalisation and predictive technologies. Two examples are reducing friction and extending maintenance intervals in electric traction systems and improving the efficiency of wind-turbine gearboxes.

Progress on these fronts would bolster SKF's role in helping drive the EU's green transition.

"Our strategy aims to deliver substantial customer value in targeted markets through sustained innovation, increased efficiency, and agility," said SKF President and CEO Rickard Gustafson. "With the support with long-term financing from the EIB, we continue to invest in creating intelligent and sustainable solutions supporting the transition to a more sustainable world."

In addition to supporting SKF's technological advancements, the EIB loan will diversify the company's funding sources. With a long-term loan structure tailored to SKF's particular needs, the EIB is helping to ensure the project's success while fostering investments from other lenders.

Background information

EIB Group

The EIB finances sound investments that contribute 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 EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030, as pledged in our Climate Bank Roadmap. Over half of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

The EIB Group signed nearly €3 billion in financing for 32 projects in Sweden last year, a record high, with more than three quarters of these commitments channelled to climate action and environmental sustainability investments. For more details about our projects in Sweden and their impact, please visit our country page for Sweden.

SKF

SKF is a world-leading provider of innovative solutions that help industries become more competitive and sustainable. By making products lighter, more efficient, longer lasting, and repairable, we help our customers improve their rotating equipment performance and reduce their environmental impact. Our offering around the rotating shaft includes bearings, seals, lubrication management, condition monitoring, and services. Founded in 1907, SKF is represented in approximately 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2023 were SEK 103,881 million and the number of employees was 40,396.

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