Cimco Marine AB said it received a credit facility of up to $15.7 million (14 million euros) for research and development of its OXE family of diesel outboards. The loan comes through the European Investment Bank’s Fund for Strategic Investments.
Stockholm-based Cimco said in a statement that the credit facility will finance up to 50 percent of the development of OXE diesel outboards, which are based on 6-cylinder twin-turbo BMW engines. The outboards will range from 200 to 300 hp.
The facility is divided into three tranches of 4 million euros, 4 million euros and 6 million euros. The tranches are conditional upon Cimco meeting specific sales targets.
“The loan will support us in meeting our growth ambitions through investment in working capital needs, expanding production capacity and increasing our sales and marketing initiatives,” said Myron Mahendra, CEO of Cimco, in the statement. “Additionally, the company will use the funds to develop its product range whilst improving its efficiency, thereby lowering emission further, as well as reducing other pollutants.”
“The EU is determined to deliver on its commitments to reduce greenhouse gas emissions, and we are working with member states on their plans to become carbon-neutral by 2050,” said Arias Cañete, an EU commissioner for climate action and energy, in the statement. “Cimco's outboard engine project drastically reduces emissions while enabling the coast guard and rescue police who use the heavy-duty engines to continue carrying out their work at sea.”