Carbios announced on Friday the signing of a memorandum of intent with Thailand's Indorama Ventures to form 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 raised by Indorama Ventures, aid from the French government and the Grand-Est Region, and by Carbios' acquisition of a stake in the joint venture.

Part of Carbios' equity contribution will be financed by a portion of its current cash position, which stood at €86 million at the end of April.

The company says it is actively considering the best options for financing 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 construction of the site should start by the end of the year, with a view to commissioning in 2025, bearing in mind that the surface area of the land offers the possibility of doubling its capacity.

Following these announcements, Carbios shares confirmed their rebound of the previous day, climbing by more than 12% on the Paris Bourse on Friday morning. It posted gains of around 21% for the week as a whole.

Copyright (c) 2023 CercleFinance.com. All rights reserved.