EIB Grants €100M Loan to Freudenberg for AI and Digital Innovation Drive

The European Investment Bank (EIB) has announced a €100 million financing package for the Freudenberg Group, a global leader in technology, engineering, and advanced materials, to strengthen its research and development (R&D) capacity and accelerate the company's digital transformation. The investment will support an overall €214 million innovation program, focused on automation, digitalization, and the deployment of AI-driven technologies, reinforcing Europe's industrial competitiveness and technological sovereignty.

This financing agreement reflects the EIB's strategic role as the EU's investment arm, supporting long-term innovation, sustainable growth, and industrial transformation in alignment with the European Union's Tech-EU Initiative and the Green Deal objectives.

"The EIB's support is a seal of quality—it validates our strategy of securing long-term competitiveness through innovation, digitalization, and sustainability," said Thomas Herr, Chief Financial Officer of the Freudenberg Group. "In 2024 alone, Freudenberg invested around €600 million in R&D—approximately 5% of our total sales. Remarkably, products developed in the last four years accounted for 31% of all sales."

Driving Europe's Technological and Industrial Transformation

The EIB's €100 million financing will enable Freudenberg to scale up its research infrastructure and pursue breakthrough technologies that enhance automation, efficiency, and digital manufacturing across multiple industrial sectors. The collaboration directly supports the EU's agenda to boost innovation ecosystems, strengthen industrial leadership, and advance digitalization as key drivers of economic resilience.

"This cooperation is a shining example of how the EIB supports corporate innovation and competitiveness in Germany and Europe," said Nicola Beer, Vice President of the EIB. "Freudenberg's leadership in automotive, e-mobility, healthcare, and advanced materials illustrates how strategic R&D investment translates into tangible industrial and societal progress."

Freudenberg, founded in 1849 and headquartered in Weinheim, Germany, operates in over 60 countries with 52,000 employees worldwide. Its technologies power diverse industries — including automotive, technical textiles, filtration, medical devices, and specialty chemicals — delivering innovative, sustainable, and high-performance solutions.

Harnessing AI, Automation, and Sustainable Materials

The new investment program focuses on strengthening Freudenberg's AI-based automation systems, digital manufacturing, and smart materials research. These advancements will allow the company to enhance efficiency, product quality, and circularity in production while reducing its environmental footprint.

Among the key innovation areas targeted:

• Artificial intelligence and robotics for predictive maintenance and precision manufacturing.

• Digital twin technologies to optimize production lines and quality assurance.

• Advanced filtration and e-mobility materials to support cleaner mobility and energy systems.

• Biobased and recyclable materials to advance climate-neutral manufacturing.

Through these projects, Freudenberg aims to deepen its technological edge in sectors critical to Europe's green and digital transitions.

Sustainability and Climate Commitments

Freudenberg's R&D strategy aligns with the United Nations Global Compact and the company's own roadmap toward climate neutrality. The group has already:

• Cut its greenhouse gas emissions significantly over the past decade.

• Increased the share of renewable energy in its operations.

• Certified production sites under internationally recognized ISO environmental and energy management standards.

The EIB's financing will therefore also contribute to climate protection and environmental sustainability, furthering the EU's objectives under the European Green Deal.

"Freudenberg's R&D programs not only drive industrial innovation but also contribute to Europe's climate goals," added Beer. "This partnership demonstrates that environmental responsibility and technological leadership can—and must—go hand in hand."

Boosting European Skills and Job Creation

Beyond technology and sustainability, the EIB loan supports the creation and protection of high-skilled jobs within Freudenberg's European R&D network. The funding will also promote continuous employee upskilling, ensuring the company's workforce remains at the forefront of scientific and digital innovation.

This aligns with the EU's broader aim to develop future-ready industrial talent, fortify Europe's technological autonomy, and increase resilience against global economic disruptions.

"By diversifying our financing base, we gain flexibility to expand our expertise and invest in the technologies of tomorrow," Herr added. "This partnership with the EIB helps us strengthen not just our balance sheet, but our innovation culture."

About Freudenberg Group

Founded over 175 years ago, Freudenberg is a globally active technology group specializing in sealing technologies, vibration control, filters, nonwovens, lubricants, and medical products. Its clients span sectors including automotive, aerospace, construction, healthcare, and energy. The group's focus on sustainable innovation has earned it recognition for breakthroughs in medical technology, e-mobility components, and digital production methods.

Freudenberg's consistent R&D investment—among the highest in its sector—has helped maintain its position as one of Germany's leading industrial innovators.

A Partnership for Europe's Future

The EIB's long-term financing underscores the importance of public-private partnerships in safeguarding Europe's industrial base. Through this collaboration, Freudenberg is poised to accelerate research breakthroughs, enhance global competitiveness, and drive Europe's transition toward a smarter, greener, and more resilient economy.

"This partnership between the EIB and Freudenberg is a clear message: Europe's future competitiveness will be built on innovation, digital excellence, and sustainability," concluded Beer.