ImpactConnect loan for Brazilian subsidiary of Schmersal

In the run-up to the COP 30 global climate conference in Belém, DEG provides a loan totalling EUR 2.75 million to the Brazilian subsidiary of the Schmersal Group. The funds come from its ImpactConnect promotional programme, implemented by DEG and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). The financing is meant for expansion and modernisation of the production site in Boituva close to São Paulo. The signing took place during a visit of German Federal Minister for Economic Cooperation and Development Reem Alabali-Radovan, ACE Schmersal Managing Director Rogério Baldauf and DEG Management Board member Monika Beck.

The Wuppertal-based safety technology manufacturer Schmersal has been operating a subsidiary in Brazil since 1974. The German SME employs around 2,000 people in more than 20 countries.

Modernisation with clearly defined ESG goals

The DEG financing facilitates the expansion of the production site and the replacement of outdated machinery to increase efficiency. The modernisation is complemented by the installation of a photovoltaic system on the factory roof, which is intended to sustainably cover the site's energy needs in the future. In addition, around 100 new jobs are to be created.

The project also takes specific action to promote women in business. ACE Schmersal commits to complying with the internationally recognised 2X criteria. Furthermore, the investment contributes to reducing local CO₂ emissions and is aligned with the goals of the Science Based Targets Initiative (SBTi).

"With this financing we are supporting a medium-sized German company as it combines its international growth strategy with clearly defined ESG goals," stated DEG Management Board member Monika Beck on the occasion of the signing. "This allows us to demonstrate how industrial development, social inclusion, and climate protection can be successfully interlinked."

ACE Schmersal is the largest foreign subsidiary of the Schmersal Group and employs nearly 500 people. The company produces safety components for industrial applications and has been recognized multiple times as a "Great Place to Work". In addition to traditional hardware, Schmersal is increasingly focusing on software-based solutions for occupational safety.

According to Rogério Baldauf, Managing Director of Schmersal, the investment reinforces the company’s leadership in sustainability and innovation: “This signing reflects our strong alignment with sustainability values and highlights how the industrial sector in São Paulo’s interior is modern, innovative, and vital to Brazil’s economic development.”