The French biotechnology company said it is postponing the construction of its PET biorecycling plant in Longlaville “for 6 to 9 months.” The groundbreaking of the new facility was celebrated in April this year.
According to Carbios, this additional delay is due to its will to complete the financing of the operation “under satisfactory conditions.” The company says the decision does not call the plant construction project into question but will help “to slow down the pace of cash burn on the project, and to pursue commercial discussions without liquidity pressure.”
Negotiations with Indorama Ventures Limited, Carbios’ initial partner for the project, are not yet finalized. The company has also entered discussions with other private and public financial institutions likely to provide financing for the project under favourable conditions.
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,” said Philippe Pouletty, founder, Chairman of the Board of Directors, who was recently named as new interim CEO, replacing Emmanuel Ladent, whose term ended on December 18, 2024.
Founded in 2011, Carbios has developed enzyme-based processes to break down plastics and thus recycle them efficiently, with reduced energy consumption.
Its biorecycling demonstration plant has been operational since 2021 in Clermont-Ferrand, France. The construction of the first industrial-scale biorecycling plant will mark the first step in the rise of the PET biorecycling technology to commercial scale. Carbios’ ambition is to finalize the financing as quickly as possible, so as to serve market needs from 2027.
Beyond the production of recycled PET, Carbios wants to bring different types of plastic materials into the circular economy, notably PETG.
