380 million Euros to the automotive sectors

The Ministry of Industry allots 380 million Euros to financing industrial projects in the Manufacturing and Automotive sectors, reports Invest in Spain.

This offer of aid, which has been published in the Official State Gazette, will provide long-term financing for companies at a time when credit is difficult to access The loans will have a maximum repayment period of 10 years, including a grace period of a maximum of two years, with no collateral and an interest rate of 3.95%.

The Ministry is offering 161 million Euros and 220 million Euros to increase competitiveness in the strategic manufacturing and automotive sectors, respectively.

This will mainly be used to boost competitive companies that incorporate innovation into their productive processes, generate employment and exports and encourage technology transfers.

This programme to boost the competitiveness of strategic industrial sectors in 2012 will be implemented through a general invitation to apply for aid open to the whole manufacturing sector, and specific sectors such as automotive component manufacturers and the aerospace sector. Specific measures will be implemented for the naval construction sector.

Any company in Spain’s industrial sector will be able to apply for aid under this programme. The Government is seeking to support strategic companies in any industrial sector, giving priority to companies rather than sectors. The aid aims to finance improved competitiveness plans for industrial companies, enabling them to carry out leading investment and actions.

The aid is designed to:
1. Generate new products or services, or improve existing ones, increasing their added value and improving their sustainability and safety. This includes production of prototypes for new products, or products with significant improvements on existing products.

2. Production process re-engineering. Redesign production processes to improve sustainability, flexibility and efficiency. This includes activities to develop and test new processes, or processes which significantly improve sustainability and the flexibility of production processes to respond to demand and efficiency (in terms of energy, resource use, etc.).

3. Adopt advanced production systems that incorporate information and communication technology, particularly where aimed at establishing stable collaborations throughout the whole value chain of a product or service.

4. Training to improve workforce skills. Training is only eligible for aid under this programme if it is specifically related to concrete objectives under the competitiveness plan submitted.

5. Investment to comply with EU environmental regulations, or to increase environmental protection in areas where there are no EU regulations. Activities that meet these requirements and focus on water purification and reuse or on the recycling and reuse of waste from products or processes will be of particular interest.

6. Investment in energy-saving measures.
Applications for aid under this programme may be submitted within a period of 20 calendar days from the date the invitation to apply is published in the Official State Gazette.