The loan will be used in the development of new household goods that will take less electricity and use lesser resources, like raw materials in production or water in the operational phase.

The new household goods will comply with EU legislation on energy labelling and eco design. They will meet tougher standards with respect to energy consumption, noise levels, pickup performance and emission limits.

Electrolux will undertake its research, development and innovation activities mainly in Sweden, Italy and Germany.

The company will collaborate with European universities and research laboratories, helping to widely spread the technologies.

EIB vice-president responsible for lending in Sweden Jonathan Taylor said: "We are pleased to be able to sign this agreement with Electrolux, as this project with its strong environmental component will contribute to achieving a resource-efficient and climate change resilient economy and society."

The EIB has to date provided four loans to Electrolux, which is headquartered in Stockholm, Sweden.

Image: Electrolux will use the EIB loan to develop energy-efficient goods. Photo: courtesy of European Investment Bank.