Austrian chemical company Borealis has been granted €250 million (£228m) in funding for the development of circular economy solutions for plastics.

The loan from the European Investment Bank (EIB) supports the firm’s research, development and innovation (RDI) programme in the area of plastics circularity, in line with the EIB’s objectives to support innovation, climate action and sustainability.

The financial support will enable Borealis to intensify the development of novel, polyolefins-based circular solutions – used in a wide range of applications in consumers products, packaging, power transmission cabling and industrial and construction materials – at its innovation centres in Austria, Sweden and Finland.

Borealis CEO Alfred Stern said: “We are exceedingly pleased to be able to boost our research and innovation activities in Europe, thanks to the EIB. It is good to have strong partners who share our belief in the importance of re-inventing for more sustainable living.”

Ambroise Fayolle, EIB Vice President added: “The promotion of circular solutions in the polyolefins industry is aligned with our goals to accelerate the transition to a circular economy, including for plastics and to support cutting-edge innovation.

“We are happy to continue and intensify our collaboration with Borealis AG by signing our largest transaction together so far. As the EU’s climate bank, we are eager to support private sector partners that are committed to environmental sustainability.”