Freudenberg secures €100m financing from European Investment Bank

Frankfurt, Germany – The European Investment Bank (EIB) is providing €100 million in financing to to support to support R&D at Freudenberg Group, the German group recently announced.

The financing will support a total investment programme of around €214 million with which Freudenberg aims to strengthen its innovative power over the long term.

The funding will be directed towards projects in automation, digitalisation and AI-supported technologies, according to Freudenberg's press statement.

The goal is to strengthen the group’s product portfolio and competitiveness: aligning with EU objectives to reinforce industrial innovation, digital transformation and sustainable growth.

Added Freudenberg, the EIB financing will support new R&D capacity and enable targeted investment in “high-impact research and breakthrough technologies” across the group.

The support "confirms our strategy of securing our long-term competitiveness through innovation, digitalisation and sustainability,” said Thomas Herr, CFO of the Freudenberg Group.

According to Herr, Freudenberg invested €600 million in R&D last year, equivalent to about 5% of sales, with products less than four years old accounting for 31% of group revenue.

The R&D programme spans multiple business areas, including automotive and e-mobility, medical technology, technical textiles, filtration and speciality chemicals.

Freudenberg said the investment would strengthen its innovation base in Germany while supporting its ability to deliver new technologies across global markets.