8 Jul 2019
EUR 28.29 million
Infrastructure, transportation and telecom
|Date of agreement:||16 Mar 2016|
|Amount in USD:||USD 150 million|
|Amount in EUR:||EUR 135.6 million|
|NACE sector / loan type:||Research and development|
|Business area:||Industries and services|
The loan has been provided to AB Electrolux for financing its R&D and innovation programme for the development of advanced, connected devices and energy-efficient electronic goods and small electric home appliances.
The financing supports Electrolux’s development and innovation both in home appliances such as dishwashers, refrigerators, freezers, vacuum cleaners, coffee machines and blenders, as well as water heaters, and professional laundry and air conditioning equipment. The enhanced performance is expected to improve not just the products’ user-friendliness, but also to decrease their energy and water consumption. The NIB loan is also financing part of the research activities done at the Electrolux Global Technology Centre in Italy on advanced electronics, application processes and new technologies to be applied to all the product lines. There is also a design part of the project, in which the NIB loan finances R&D activities performed by Electrolux Group Design Lab in Stockholm, focusing on design based on user experience.
Electrolux is a global leader in home appliances, having brand names such as Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine. The company sells more than 60 million products to customers in more than 150 countries every year. Electrolux was established in 1919, it has 58,000 employees and is headquartered in Stockholm, Sweden.
Investments in R&D on behalf of one company contribute to the productivity growth of the company and other companies in the same sector or region due to knowledge and technology spill-overs. Since Electrolux is globally well connected and collaborates in research with Swedish universities, the knowledge developed in the company’s R&D processes is likely to migrate to other economic activities in NIB’s member area. This could be of particular importance in the field of digital transformation of home appliances, which is one of the key R&D priorities of Electrolux. The digital transformation and improved connectivity of home appliances—also referred to as the “Internet of Things”—is expected to create value in the home appliances sector by enabling manufacturers to build longer-term relationships with clients through after-sales services that were previously unavailable.
No environmental concerns have been identified.