DEG has provided a loan of EUR 2.75 million to the Brazilian subsidiary of the Schmersal Group as part of its ImpactConnect programme, which is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). The financing will support the expansion and modernization of Schmersal’s production site in Boituva, near São Paulo. The agreement was signed during a visit attended by German Federal Minister for Economic Cooperation and Development Reem Alabali-Radovan, ACE Schmersal Managing Director Rogério Baldauf, and DEG Management Board member Monika Beck.
Schmersal, based in Wuppertal, Germany, has operated in Brazil since 1974. The company employs about 2,000 people across more than 20 countries.
The funds will be used to expand production capacity and replace outdated machinery at the Boituva facility to improve efficiency. Part of the modernization includes installing a photovoltaic system on the factory roof to meet future energy needs sustainably. The project also aims to create approximately 100 new jobs.
ACE Schmersal has committed to supporting women in business by adhering to internationally recognized 2X criteria. The investment is expected to help reduce local CO₂ emissions and aligns with goals set by 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 noted as the largest foreign subsidiary within its group and employs nearly 500 people. It produces safety components for industrial use and has received recognition as a “Great Place to Work.” In addition to hardware products, Schmersal is increasing its focus on software-based occupational safety solutions.
According to Rogério Baldauf, Managing Director of Schmersal, “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.”