Essity Secures EUR 400 Million Loan to Boost Innovation in Hygiene and Health Sector

In a significant advancement towards enhancing its innovation capabilities, Essity, a leading hygiene and health company, has finalized a EUR 400 million loan deal with the European Investment Bank (EIB). This agreement is set to propel the company's development across its various business areas while focusing on sustainability and performance improvements.

The loan agreement, characterized by favorable conditions and a maturity period of seven years, is aimed at supporting Essity’s ongoing research and innovation initiatives. According to Ulrika Kolsrud, President and CEO of Essity, this partnership with the EIB will allow the company to strengthen its innovation processes, ultimately paving the way for both value-added upgrades and groundbreaking product launches. Kolsrud emphasized the company's commitment to blending sustainability with high performance in order to create innovations that make a genuine difference in health and hygiene.

Essity’s approach to innovation is grounded in deep consumer insights coupled with advanced technologies. This strategy enables the company to craft solutions that not only promote individual well-being but also enhance customer value and competitive strength. Furthermore, the company is focused on reducing its environmental impact, aligning its goals with broader sustainability targets. Kolsrud remarked, "By combining sustainability and performance, we are setting new standards in the hygiene and health market."

The EIB’s Vice-President, Karl Nehammer, highlighted the importance of sustained investments in innovation for Europe’s competitiveness. He noted that the support for Essity's research and innovation efforts will not only boost the company's capabilities but also cement Europe's technological leadership in the hygiene and health sectors. The EIB, as the European Union’s long-term lending institution, aims to strengthen the competitiveness of the EU through financing projects that promote research and development (R&D) throughout Europe.

The EIB partnership is particularly crucial in advancing the green transition and fostering a circular economy. As industries across Europe begin to prioritize sustainability, the investment in Essity’s initiatives underscores the bank's mission to champion projects that contribute to a better future for all.

In conclusion, with this new funding, Essity is poised to reaffirm its leadership position in hygiene and health by introducing innovative, sustainable products. This agreement not only signifies a step forward for Essity but also emphasizes the critical connections between investment, innovation, and the overall progress within the European market. As Kolsrud summarized, the partnership is about making impactful changes that resonate within both the industry and society at large.