European Chemical Industry News & Insights

CARBIOS delays Longlaville plant construction by 6-9 months due to financing

At a glance
  • CARBIOS applied for an 86 million euro-GPS from the French State.
  • Construction of the Longlaville plant is postponed by 6 to 9 months.
  • CARBIOS aims to secure major contracts by the first half of 2025.
  • Cash reserves are €92.8 million, with €19.6 million in term deposits.
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Financing and Delays

CARBIOS is actively engaging with public stakeholders and private investors to secure financing for its Longlaville PET biorecycling plant. The company has applied for an 86 million euro guarantee under the French State's Strategic Projects Guarantee scheme. While subsidies from the France 2030 bid have been approved, their release is pending European Commission authorization. Due to these financing delays, the construction of the Longlaville plant is postponed by 6 to 9 months.

Financial Position

Despite the postponement, CARBIOS is managing its cash flow effectively. As of November 30, 2024, the company holds cash reserves of €92.8 million, supplemented by €19.6 million in term deposits classified as financial assets. This financial position allows CARBIOS to continue its operations and strategic initiatives without immediate liquidity pressure.

Strategic Outlook

CARBIOS remains focused on its growth strategy and anticipates securing several major binding commercial contracts in the first half of 2025. The delay in plant construction is seen as a strategic move to reduce cash burn and maintain financial stability while awaiting additional non-dilutive financing.

Leadership Changes

Philippe Pouletty, founder and Chairman of the Board of Directors, has been appointed interim CEO, replacing Emmanuel Ladent. Vincent Kamel, a Director with extensive international industrial experience in specialty chemicals, will serve as an advisor to the new CEO. These leadership changes are part of CARBIOS's efforts to navigate the current financial and operational challenges effectively.

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