CARBIOS Postpones Longlaville Plant Construction by 6-9 Months
The company announced a 6- to 9-month delay in the construction of its Longlaville PET biorecycling plant due to delayed financing arrangements. Construction will commence later, with production anticipated to start in 2027.
French biotechnology firm CARBIOS has announced a postponement of 6 to 9 months for the construction of its planned PET biorecycling plant in Longlaville. The delay is attributed to slower-than-expected progress in securing non-dilutive financing and the finalization of public grant approvals.
The company stated that the postponement does not call the project itself into question but will allow for a reduced rate of cash burn and enable continued commercial discussions without liquidity pressure. CARBIOS confirmed its cash position was €92.8 million, supplemented by €19.6 million in term deposits as of November 30, 2024, which is expected to cover its needs for over twelve months.
Philippe Pouletty, CARBIOS founder and Chairman of the Board, has stepped in as interim CEO, replacing Emmanuel Ladent. Pouletty cited the decision as necessary for the prudent execution of the company's strategy and safeguarding cash flow in a complex environment. Vincent Kamel, a director with extensive industrial experience, will advise Pouletty.
CARBIOS is continuing discussions with public stakeholders and private investors. Subsidies under the France 2030 initiative have been approved but await European Commission authorization for release. The company has also applied for an €86 million state guarantee from the French government. Binding commercial contracts are anticipated in the first half of 2025, with production at the Longlaville facility expected to commence in 2027.