Recycled paper and packaging solutions producer Hinojosa has been granted a loan worth €20 million (£16.65m) to improve the sustainability and efficiency of its production plants in Spain.
The operation aims to improve the production process of the Xàtiva-headquartered company to achieve greater efficiency by modernising its facilities, equipment and machinery and incorporating advanced technology.
The loan from the European Investment Bank (EIB) will be invested in eight of its existing production plants for recycled paper and packaging solutions, as well cover the company’s digitalisation strategy and installation of solar panels.
Hinojosa’s business model is based on the circular economy as everything generated in the production process provides a source and raw materials for new processes, minimising waste generation.
The EIB-financed investment plan is in line with the Bank’s climate action and environmental sustainability objectives as it will promote the replacement of fossil-based single-use plastics with more sustainable and recyclable paper-based packaging solutions.
In addition, it will lead to more efficient production processes and contribute renewable energy generation, leading to the reduction of greenhouse gas emissions.
EIB Vice President Ricardo Mourinho Félix said: “As the EU climate bank, we are pleased to be supporting Hinojosa in modernising and digitalising its production systems to improve the sustainability of its products and processes. This agreement demonstrates the EIB’s strong commitment to innovation and to promoting clean technologies, which are key to achieving the European objective of climate neutrality.”