AFYREN Secures €9 Million Financing to Boost NEOXY Startup

AFYREN Secures Essential Financing for Growth

AFYREN, a prominent greentech firm, has exciting news to share! The company has successfully secured a substantial loan of 9 million euros. This financial backing is designed to propel the startup phase of its innovative AFYREN NEOXY plant, which specializes in biobased ingredients. This financing comes from Bpifrance, the French state investment bank, as part of their support for cutting-edge, sustainable initiatives.

Details of the New Loan Arrangement

The breakdown of the loan includes two instalments; one involving 6 million euros, while the other will be 3 million euros. This funding is structured as a 15-year loan, featuring a 3-year grace period that allows AFYREN to focus initially on establishing its production capabilities. This financing is part of a broader strategy linked to the “France 2030” investment program aimed at industrializing innovative technologies throughout the country.

Demonstrating Innovative Industrial Approach

A significant aspect of receiving this funding is the validation it provides for AFYREN's innovative approach to industrial manufacturing. The company is navigating a complex financial landscape while securing vital funding to enhance its operational capabilities. This loan constitutes a critical element of AFYREN's comprehensive financial framework as it embarks on continuous production and scales up operations.

CEO’s Remarks on Positive Outlook

Nicolas Sordet, the Chief Executive Officer of AFYREN, expressed optimism regarding this new funding opportunity. He stated, "This new non-dilutive financing is a very positive signal that shows the continued support of our financial partners. It comes at a time when we are making weekly progress on our remaining start-up stages, with a view to delivering the continuous production of commercial products for our customers.” This sentiment underscores the vital role financial partnerships play in the company's growth trajectory.

Update on Acid Production and Market Presence

AFYREN recently provided an update about its operational advancements, particularly in acid production. They noted crucial operational adjustments needed to sustain continuous production levels. Moreover, successful repairs included replacing a damaged piece of equipment, allowing AFYREN to resume its ramp-up campaigns.

Feedback from Commercial Operations

In a related positive note, AFYREN has received favorable reviews regarding its commercial acid deliveries. Customers have praised the quality of the produced products, further validating the company’s effort and commitment to excellence as they proceed with invoicing these successful deliveries.

About AFYREN: Innovating for a Sustainable Future

Founded in 2012, AFYREN stands at the forefront of greentech innovations aimed at decarbonizing industrial supply chains. The company utilizes an innovative, proprietary fermentation technology that transforms local biomass from agricultural co-products into valuable, low-carbon ingredients. This technology effectively replaces traditional, petrochemical-sourced ingredients used broadly in various formulations.

AFYREN’s sustainable solutions are designed to meet pressing decarbonization challenges across diverse sectors, including human and animal nutrition, flavors and fragrances, life sciences, and technical fluids. Their approach guarantees both sustainability and economic competitiveness, making transitions easier for manufacturers without necessitating substantial process changes.

Expansion and Employment Growth

Currently, AFYREN operates its first production plant, known as AFYREN NEOXY, located in the Grand-Est region, primarily aimed at serving the European market. The company is also venturing into projects abroad, enhancing its international footprint, including a noteworthy initiative in Thailand with a leader in the sugar industry.

As of late 2023, AFYREN employs approximately 120 dedicated professionals across its facilities in Lyon, Clermont-Ferrand, and Carling Saint-Avold. Further reflecting its commitment to innovation, AFYREN allocates around 20% of its annual budget to research and development, continuously working to amplify its sustainable offerings.

AFYREN has been publicly listed on the Euronext Growth exchange in Paris since 2021. Investors keen to follow AFYREN’s journey can note its ISIN code: FR0014005AC9 and mnemonic: ALAFY.

Frequently Asked Questions

What is AFYREN's main business focus?

AFYREN specializes in creating biobased, low-carbon ingredients using a unique fermentation technology.

How much financing has AFYREN secured recently?

AFYREN has secured a loan of 9 million euros to support its AFYREN NEOXY plant.

Who provided the loan to AFYREN?

The loan was provided by Bpifrance, the French state investment bank, as part of a broader investment strategy.

What operational improvements has AFYREN made?

AFYREN has successfully replaced damaged equipment and is now ramping up production levels.

Which sectors does AFYREN cater to?

AFYREN serves various sectors including human and animal nutrition, materials science, and technical fluids.

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