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Dec 31, 2022
PureCycle Q4 2022 Earnings Report
PureCycle's Ironton facility neared mechanical completion, secured a $150 million line of credit, and selected its first European PP recycling facility location.
Key Takeaways
PureCycle Technologies announced its Q4 2022 results, highlighting the near completion of its Ironton facility, a new line of credit, and expansion into Europe. The company is focused on commencing commercial production and ramping up operations at Ironton.
Ironton facility is nearly mechanically complete, with final systems expected to be complete in April.
A mutually agreeable limited waiver was executed with the Ironton Bondholders.
A $150 million line of credit was secured for general working capital purposes.
The first European polypropylene recycling facility location was selected at the Port of Antwerp-Bruges in Belgium.
Forward Guidance
PureCycle is focused on completing the Ironton facility, commencing commercial production, and ramping up operations. They are also planning expansion in Augusta, Georgia, and Europe, while managing their capital resources.
Positive Outlook
- Expect to reach mechanical completion of Ironton facility by early April.
- Expect to be on track for commercial production of pellets and be in a position to ramp-up production by the end of April.
- Secured a $150 million revolving line of credit to be available for general working capital purposes.
- Continue to move forward on engineering and pre-construction activities at its planned multi-line purification facility in Augusta, Georgia.
- Anticipate construction activities to commence in the first half of 2024, with production ramp-up currently anticipated in the first half of 2026 for European PP recycling facility.
Challenges Ahead
- Experienced delays outside of direct control.
- Delay in start-up commissioning timeline was primarily due to engineering rework, extruder component deliveries, and extruder electric equipment damaged during commissioning.
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