6 March 2014
Manufacturers and food processing businesses are benefiting from the Clean Energy Finance Corporation (CEFC) and Commonwealth Bank's $100 million Energy Efficient Loan program, with finance for equipment to increase energy efficiency, save on their energy costs and boost competiveness.
CEFC CEO Oliver Yates said the program is enabling manufacturers and food producers to upgrade with new technologies and energy efficient equipment to accelerate energy productivity gains, increase capacity, improve profit margins and reduce emissions.
From Victoria's fruit producing heartland to its northern border, the CEFC and Commonwealth Bank are financing rural and regional manufacturers and food processors to future-proof their operations.
"The Victorian manufacturing sector is an important contributor to the State's economy, but the high Australian dollar, import competition and weak export markets make it tough for many regional and family-owned manufacturers to access funds to grow and innovate," Mr Yates said.
Mr Yates said energy costs can be a major input cost for many food producers and manufacturing businesses and by upgrading to new technologies and more efficient equipment they can really make a difference to their business and improve profit margins.
While there may be a strong business case for implementing energy efficiency measures, firms often find sourcing suitable finance a challenge to making these investments.
The CEFC and Commonwealth Bank are working to enable good projects get underway through the Energy Efficient Loan program, providing finance that is tailored to agribusiness and manufacturing needs, and matched to the cost savings these projects deliver for these businesses.
"This program is providing clean energy finance opportunities for manufacturers and other sectors at a scale that simply hasn't existed until now," Mr Yates said.
"New productivity initiatives financed through Energy Efficient Loans are helping these businesses remain the backbone of their communities, providing local employment opportunities and helping manufacturers to remain competitive in a rapidly changing environment."
Businesses which have already benefited from the CEFC-CBA Energy Efficient Loans include:
Commonwealth Bank and CEFC have also provided finance to:
"Enabling business to access funding to adapt, invest in productivity enhancing upgrades and grow is critical. We need a vibrant, innovative competitive private sector that creates jobs and builds strong rural and regional communities, whilst reducing emissions," Mr Yates said.
ABOUT THE ENERGY EFFICIENT LOAN PROGRAM
Under the Energy Efficient Loan (EEL) program, the CEFC and Commonwealth Bank are co-financing loans for businesses to save on their energy costs. The EEL is designed as a cost-effective financing solution to help businesses, particularly those from the manufacturing sector, upgrade equipment to reduce their energy costs while preserving precious working capital.
Information about finance under the EEL program is available from Commonwealth Bank Relationship Managers or Asset Finance Business Development Managers.