ISTANBUL (Turkey), November 7 (SeeNews) – The European Investment Bank (EIB) said it has signed a 55 million euro ($68 million) loan agreement for research, development and innovation (RDI) activities with Turkish carmaker Turk Otomobil Fabrikasi [BIST:TOASO], or Tofas.
Tofas will use the loan to finance the development and implementation of technologies designed to enhance the fuel efficiency and safety characteristics of motor vehicles, the EIB said in a statement on Thursday.
The RDI activities will take place mainly at Tofas’ specialised centre in the western Turkish city of Bursa. The project will help Tofas to further increase its technological and organisational capacities, thus making it possible to undertake a wider range of R&D projects within the Fiat-Chrysler Group R&D network, and not exclusively targeting local vehicle production. It will also strengthen cooperation between Tofas and European and local suppliers, universities and research institutes, and will contribute to increasing the competitiveness and added value of Turkish manufacturing goods, according to the EIB.
This is the first EIB loan in Turkey supported by the InnovFin – EU Finance for Innovations, with the financial backing of the European Union under Horizon 2020 Financial Instruments, the EIB said. InnovFin Large Projects is dedicated to improving access to risk finance for research and innovation projects in the European Union.
($ = 0.808 euro)