14 Mar 2019
EUR 102.26 million
Financial institutions and SMEs
|Date of loan:||7 Feb 2014|
|Customer:||Husqvarna AB (publ)|
|Amount in SEK:||SEK 425 million|
|Amount in EUR:||EUR 48 million|
|NACE sector / loan type:||Manufacture of electrical machinery and apparatus|
|Business area:||Industries and services|
The loan has been provided for a chainsaw production facility to be developed in Huskvarna, Sweden. Husqvarna AB develops and manufactures high-end models of chainsaws, bush cutters and trimmers at the same location.
Husqvarna has identified chains as a key strategic component which Husqvarna considers it should have full control over and therefore produce internally. The chain is a complex product requiring advanced engineering. It is closely linked to the overall performance of the chainsaw.
The first Husqvarna plant was established in 1689. Nowadays the Husqvarna group, with its 14,200 employees, is the world’s largest producer of outdoor power products that are being sold in more than 100 countries.
The new facility will make the company less independent from external suppliers of chains and it will expand the company’s portfolio with a product that has large aftermarkets. The new product and the expansion of the company’s R&D activities will add value to the company’s selection of products and contribute to the development of skills within the company. Since the new facility will increase the company’s R&D activities and its collaboration with local universities, the project might generate some positive spill-over effects to other companies in the form of skills transfer.
The production of chains for saws consists of metal-cutting operations and surface treatment processes on metals. Given that the operations will take place in an existing building in Husqvarna’s industrial park in Sweden, no significant environmental concerns have been identified.
Hexavalent chromium, which is included on the European Chemical Agency’s list of possible substances to be phased out, will be used in the hard chromium plating process of the cutting links. No alternative treatment that provides the same properties is yet known, but Husqvarna is continuously working to find substitutes.
All systems for liquids, like cutting fluids and electroplating fluids, are held in closed systems and no discharge of process liquids will take place. Existing procedures under the environmental management system for the handling of hazardous waste will be applied. Emissions into the air will be treated using filters and scrubbers. Noise guarantees to ensure compliance with noise requirements for new operations are being requested from the suppliers of the production equipment.