#Recycling / Circular Economy

2024-12-19

Considering delayed non-dilutive sources of financing, CARBIOS postpones construction of its Longlaville PET biorecycling plant for 6 to 9 months

CARBIOS, (Euronext Growth Paris : ALCRB), a pioneer in the development and industrialization of biological technologies to reinvent the life cycle of plastic and textiles, is postponing the construction of its PET biorecycling plant in Longlaville for 6 to 9 months due to delayed funding pending completion of additional financing under satisfactory conditions. CARBIOS' ambition is to finalize this financing, notably non-dilutive, as quickly as possible, so as to serve market needs from 2027. CARBIOS expects to sign several binding commercial contracts in the first half of 2025.

Without calling the plant construction project into question, the decision to postpone the project enables CARBIOS to slow down the pace of cash burn on the project, and to pursue commercial discussions without liquidity pressure. Given the 6 to 9-month planned shift in the construction of the Longlaville plant and tighter control over spending, CARBIOS, with cash reserves of €92.8 million as of November 30, 2024, supplemented by €19.6 million in term deposits classified as financial assets, 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. I am delighted that Vincent Kamel, a Director since 2021 with exceptional international industrial experience in specialty chemicals, has agreed to work alongside me", says Philippe Pouletty, founder, Chairman of the Board of Directors and new interim CEO of CARBIOS.

Progress on financing the Longlaville plant

Negotiations with Indorama Ventures Limited 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 favorable conditions.

These discussions are currently under review. CARBIOS has therefore 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 euros) under the “Strategic Projects Guarantee” (GPS) scheme, for which the company has obtained eligibility. Bpifrance's GPS scheme is designed to support projects of strategic interest for the French economy, notably by offering partial debt coverage of up to 80% of loans or investments.

In addition, as a reminder, CARBIOS has obtained non-dilutive funding of 30 million euros from France 2030 and a commitment of 12.5 million euros from the Grand Est Region, The pre-notification phase of France's state aid scheme to the European Commission has been completed. Notification by the French State should take place in the coming days, with a view to authorization of the “Circular Economy” state aid scheme in the first quarter of 2025.

In April 2024, CARBIOS and representatives of localaAuthorities, partner brands and industrial partners celebrated the © 2024 groundbreaking ceremony for the World's first PET Biorecycling Plant © 2024 CARBIOS

Governance update

Emmanuel Ladent's term of office as Chief Executive Officer ended on 18 December 2024. Philippe Pouletty, founder of CARBIOS and Chairman of the Board of Directors, has been appointed CEO, which he has accepted on a transitional basis, with effect from 18 December 2024. The Board of Directors is in the process of recruiting a new CEO to pursue the Company's development.

Additional info:

+ CARBIOS maintains a robust available cash position of 112 million euros on 30 November 2024

+ CARBIOS confirms major advances in commercial contract negotiations and makes changes to its Governance

+CARBIOS is speeding up its discussions with public stakeholders and private investors. The subsidies obtained under the France 2030 bid operated by ADEME have been approved; their release is pending authorization of the state aid scheme by the European Commission.

+ Within the “Strategic Projects Guarantee” scheme (GPS), CARBIOS has applied for an 86 million euro-GPS to the French State. Bpifrance Assurance Export (BPIAE) has confirmed its willingness to consider granting a GPS.

+ CARBIOS is pursuing its growth strategy and is confident of rapidly securing several major binding commercial contracts in the first half of 2025

+ Philippe Pouletty, CARBIOS founder and Chairman of the Board of Directors, has been nominated Chief Executive Officer, which he accepted on a transitional basis pending the appointment of a new CEO, to replace Emmanuel Ladent. Vincent Kamel, Director, will act as advisor to the new CEO.

Carbios and Wankai postpone startup of China’s first PET biorecycling plant to 2028

The industrial deployment of enzymatic PET recycling in Asia is progressing, but at a slower pace than initially planned. French recycling technology company Carbios and its Chinese partner Wankai New Materials have announced that the commissioning of their planned PET biorecycling facility in Haining, Zhejiang Province, has been postponed and is now expected in the first half of 2028.

Carbios confirms Longlaville plant in France following financing progress

Carbios has reaffirmed its plans to build its Longlaville plant in France within a project financing framework, targeting the start of production in the first half of 2028. The company also reports a solid cash position of around €60 million at the end of 2025 and has appointed Benoît Grenot as Deputy Chief Executive Officer to support the execution of its strategic projects.

CARBIOS and Wankai sign strategic PET biorecycling pact

CARBIOS (Euronext Growth Paris: ALCRB) and Wankai New Materials (“Wankai”), a listed subsidiary of Zhink Group, the 3rd largest PET producer in China and 4th worldwide, announce the signing of the definitive agreement establishing a strategic partnership for the industrial rollout of CARBIOS’s PET biorecycling technology in Asia. The first milestone will be the construction of a PET biorecycling plant in China.

Reju expands textile-to-textile recycling network with six international fabric manufacturers

Reju, a textile-to-textile regeneration company, is expanding its industrial network through collaborations with six fabric manufacturers in Europe and the Americas. The initiative aims to accelerate the integration of regenerated polyester into textile manufacturing and support the development of finished fabrics for commercial applications.

Trützschler expands technical service capabilities for spinning mills in Pakistan

Faster support, shorter downtime and advanced repair capabilities: customers across Pakistan can now benefit from the Trützschler Service Station at its new location in Lahore. By combining Trützschler service expertise with state-of-the-art diagnostic equipment, the new facility helps spinning mills resolve technical issues more quickly and maintain reliable production.

Stäubli to introduce new S3292 dobby for high-speed weaving at ITME India 2026

Stäubli will introduce its new S3292 dobby at ITME India 2026, taking place from December 4 to 9 at the India Expo Centre & Mart in Greater Noida, Uttar Pradesh. Designed for high-speed air-jet weaving, the new machine will be among the highlights of the company's presentation, which also includes warp preparation systems, cam motions, Jacquard technologies and digital services.

DITF develops bio-based binding fibers for wood-fiber insulation materials

As part of the CelluWoodFlex project, the German Institutes of Textile- and Fiber-Research in Denkendorf (DITF) are developing bio-based cellulose ester fibers as alternative binding fibers for flexible wood fiber insulation materials. In addition to the spinning process and the production of suitable staple fibers, the institute is also investigating how wood and cellulose fibers can be separated and recycled at the end of their useful life.

Magnera highlights HighPleat™ filtration media technology at FiltXPO 2026

At FiltXPO 2026, held on October 28–29 at the Minneapolis Convention Center in Minneapolis, Minnesota, Magnera highlighted advances in air filtration media architecture, with a particular focus on its HighPleat™ platform for MERV 8–10 applications. The technology combines a lofted fiber structure with optimized pore architecture to address the challenge of balancing filtration efficiency, airflow resistance and contaminant-holding capacity.

Ahlstrom expands depth filtration media production capacity at US facility

Ahlstrom has completed a major investment in its Kingston manufacturing facility in New York, USA, expanding production capacity for high-performance depth filtration media. The modernization of Line 3 is designed to improve manufacturing efficiency, enhance quality control and increase flexibility in producing different product widths.