Technoform S.A., a subsidiary of Sunlight Group, signed a €60.5 million bond loan contract with Alpha Bank to co-fund, along with the Recovery and Resilience Facility, growth investments for the establishment of a state-of-the-art, automated plant producing metallic and plastic components for industrial batteries and energy storage systems, in Kilkis, Northern Greece, a company with worldwide exports.
The funding of the project amounts to €60.5 million and is part of an overall €75.6 million investment on behalf of Technoform, utilizing €37.8 mil. of Recovery and Resilience Facility funds (50%) and €22.7 million via loan from Alpha Bank (30%). The remaining 20% is covered by the company’s own funds. The investment project falls under the “Digital Transformation” and “Green Transition” pillars of the National Recovery and Resilience Plan “Greece 2.0.” It aims at increasing Technoform’s production capacity, while also supporting the country’s national effort to upgrade the domestic production model and achieve sustainable growth – centered around regional Greece where Sunlight Group operates its facilities.
Technoform S.A. specializes in the design and manufacturing of molds, machined parts and components, as well as the production of metal trays for industrial batteries and other energy storage systems.
Through the implementation of this investment, the company aims to capitalize on the opportunities arising in the global energy market for energy storage solutions, and especially in the sector of industrial lead-acid batteries. In addition, Technoform aims to further penetrate the rapidly developing market of components for lithium-ion batteries. Upon the conclusion of this investment project, Technoform is anticipated to extend the production capacity of its Kilkis-based manufacturing unit, develop new products, and proceed with its digital transformation, while also reducing the energy footprint of its operation.
The agreement was signed at the headquarters of Alpha Bank at an event attended by Theodoros Skylakakis, Alternate Minister of Finance responsible for the implementation of the National Recovery and Resilience Plan “Greece 2.0”; Nikos Mantzoufas, Governor of the Greek Recovery and Resilience Fund Agency; Antonis Papadas, Finance Director of Sunlight Group and BoD member of Technoform S.A.; and Nikos Christodoulou, Treasury & Credit Control Manager of Sunlight Group. They were hosted by Yannis Emiris, General Manager Wholesale Banking at Alpha Bank, Georgina Farmaki, Lending Division Manager Wholesale Banking, and other Bank executives.
Commenting on the agreement Minister Skylakakis stated: “The change in the domestic production model has started taking place in Greece and the Recovery and Resilience Facility has made a decisive contribution to this success. A great example is the production investment signed today that will be implemented in Kilkis. It is a modern, industrial plant for the production of battery components, an innovative investment that promotes green and digital transition and contributes both to regional development and the competitiveness of our economy”.
Governor Mantzoufas added: “The Recovery and Resilience Facility continues to robustly support the Greek industry. In this case, the support regards the development of a manufacturing unit for innovative and high-tech battery components, and the digitization of the relevant production process. This investment is targeted at the region of Central Macedonia, contributing to the further enhancement of Greek industrial production, as well as regional development.”
Representing Technoform and Sunlight Group, Mr. Papadas noted: “I’d like to thank all parties for the successful completion of this significant agreement. Technoform’s total investment plan exceeds €100 million and is centered around the company’s industrial facility in Kilkis. With the support of the Recovery and Resilience Facility and Alpha Bank, the facility will be upgraded and automated, and its production capacity increased. This development will strengthen the battery value chain created by Sunlight Group, as Technoform supplies its production facilities in Greece and abroad with top quality metal and plastic components for batteries. Thus, it greatly contributes to the vertical integration of its relevant production, while also servicing other global customers. Sunlight Group will continue supporting Technoform in the implementation of its autonomous growth plans, enhancing digital and green transition, the local and the national economies, and the sustainable energy targets of Greece and the EU.”
On behalf of Alpha Bank, Mr. Emiris concluded: “Diversifying the production mix of the national economy with increased contribution from critical industries, such as technology, is key for the future sustainable growth of Greece, and at Alpha bank we are proud to support relevant growth initiatives. The funding of the Technoform investment project in a specialized sector, such as battery components, upgrades the technical expertise of the domestic industry and, consequently, the value added. It is therefore estimated to have a multiplying positive impact, contributing to the green and digital transition of the Greek economy.”