Carbios Postpones Construction of PET Bio-Recycling Facility in France
French green chemistry company Carbios announced that it is postponing the construction of its PET bio-recycling plant in Longlaville for six to nine months due to delayed funding pending completion of additional financing under satisfactory conditions. The company aims to complete the financing as soon as possible to meet market needs from 2027. Carbios expects to sign several binding commercial contracts in the first half of 2025.
According to Carbios, the decision to defer the construction of the plant does not call into question the project, but it does allow the company to slow down the rate of cash consumption and to continue commercial discussions in a cash-neutral manner. With the planned delay in the construction of the Longlaville plant and tighter control of expenditure, Carbios said that it is “well positioned to meet its needs beyond the next twelve months.”
“To ensure the prudent execution of our strategy and safeguard our cash flow in a complex environment, we are postponing construction of the plant in line with the expected timetable for public grants and the negotiation of the necessary additional non-dilutive financing,” commented Philippe Pouletty, founder, chairman of the board of directors and interim CEO of Carbios.
In addition to ongoing negotiations with Indorama Ventures, the company has also entered discussions with other private and public financial institutions likely to provide financing for the project under favorable conditions.
As these discussions are currently under review, Carbios has obtained confirmation from the French State, including Bpifrance, of its potential support in activating the appraisal of its request for debt coverage (request for €86 million) under the “Strategic Projects Guarantee” (GPS) scheme, for which Carbios has obtained eligibility.
