Challenging financial markets have polypropylene recycler PureCycle Technologies Inc. warning about possible impacts on the company's planned facility in Georgia.
The Orlando, Fla.-based company said during a Nov. 10 conference call that financing for the project is still not in place as a Dec. 31 deadline approaches with the Augusta Economic Development Corp., owners of land PureCycle wants to develop into the company's second facility.
Despite the upcoming date, CEO Dustin Olson expressed confidence his company will find a solution to allow the project to move forward.
"We know we need to get Augusta financed. We'll do that," Olson said.
While the CEO is expressing confidence, PureCycle still faces an end-of-year deadline that could see AEDC terminate an agreement with PureCycle if financing is not in place.
"This is just a timing item that we have to work though with them to get to the other side," Olson said. "We have pretty high confidence."
While PureCycle has spent millions to order machinery for the company's second recycling facility, the CEO allowed that local officials have seen virtually no work at the proposed site at this point. The company did hold a recent groundbreaking ceremony there.
PureCycle, meanwhile, indicated that the company's planned material collection and preparation facility in Winter Garden, Fla., could end up being relocated in the face of local opposition.
The facility, which already has equipment installed but is not operational, still needs to secure water and sewer permits to open. But PureCycle has been facing vocal opposition due to the location of the facility, which opponents claim will impact the quality of life of local residents.
As a result, the company is now allowing that the facility might end up moving elsewhere.
"The company continues to work with local officials in Central Florida in an effort to remedy issues related to obtaining the necessary water and sewer permits to construct its current PreP site. The company has also begun an evaluation of alternative sites," PureCycle said in a statement.
Work on the company's first recycling facility in Ironton, Ohio, is nearing completion. But delays in shipment of an extruder from Germany is pushing back opening into early 2023. The company expects the facility, which uses solvent-based technology to recondition used PP into virgin-like resin, to be fully operational next year.
PureCycle is a publicly traded company that has yet to start earning revenue as the company continues to develop its locations. The stock price fell on the company's conference call and update on Nov. 10. After starting the trading day at $7.38, shares fell to as low as $5.82 before rebounding to $6.46 by mid-afternoon.