(News Bulletin 247) – Carbios announced on Friday the signing of a memorandum of intent with the Thai Indorama Ventures with a view to forming a joint venture dedicated to the construction of their joint biorecycling plant.

Under the terms of the project, Indorama – a specialist in sustainable chemicals – plans to raise some 110 million euros to support the joint venture.

The total investment for the new plant is thus re-estimated at around 230 million euros, taking into account the recent impact of inflation.

The project will therefore be financed by the sums mobilized by Indorama Ventures, aid from the French State and the Grand-Est Region, and by Carbios taking a stake in the joint venture.

Part of Carbios’ equity contribution will be partly financed by a share of its current cash, which amounted to 86 million euros at the end of April.

The company says it is actively studying the best options to finance the remaining amount.

Under the agreement unveiled today, Carbios is expected to acquire 13 hectares of land from Indorama Ventures’ existing PET plant in Longlaville, with permits expected by the third quarter of 2023.

This roadmap means that the construction of the site should begin by the end of the year, with a view to commissioning in 2025, knowing that the surface of the land offers the possibility of doubling its capacity.

Following these announcements, the Carbios title confirmed its rebound from the day before and climbed more than 12% on the Paris Stock Exchange on Friday morning. It posted gains of around 21% over the week as a whole.

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