Loop Industries, Inc. recently announced a significant joint venture agreement with Ester Industries Ltd. to establish a manufacturing facility in India. This venture aims to produce recycled dimethyl terephthalate (rDMT), recycled mono-ethylene glycol (rMEG), and specialty polymers with a substantially reduced carbon footprint.
The joint venture, structured as a 50/50 partnership, brings together Loop’s innovative technology in recycled PET plastic and polyester fiber manufacturing with Ester’s expertise in polymer production. Leveraging Loop’s Infinite Loop™ technology, the facility will offer advantages over traditional mechanical PET recycling methods.
With a strategic focus on sustainability and innovation, the partnership seeks to address the growing demand for low-carbon DMT and MEG in the global market. The planned facility is projected to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually, with a potential carbon emissions reduction of up to 70% compared to virgin DMT and MEG.
The initiative marks a strategic expansion for Loop Industries into the specialty chemicals market, catering to diverse industries including electronics, automotive, textiles, cosmetics, and packaging. The venture aligns with Loop’s commitment to circularity and sustainable growth, offering customers a viable alternative to traditional chemical manufacturing processes.
Construction of the facility is scheduled to commence by the end of the year, with commercial operations expected to begin in early 2027. The project, with an estimated total capital investment of approximately US$165 million, signifies a significant step towards advancing sustainable solutions in the polymer industry.
Arvind Singhania, Chairman and CEO of Ester Industries Ltd., emphasized the shared commitment to sustainability, stating, “This partnership reinforces our dedication to advancing sustainable solutions in the polymer industry.“
Daniel Solomita, Founder and CEO of Loop Industries, highlighted the strategic significance of the partnership, stating, “Our partnership with Ester reflects a strategic alignment built on our shared values of sustainability and innovation.“
The joint venture not only underscores the commitment to environmental responsibility but also presents a promising opportunity for both companies to expand their presence in key markets and drive sustainable growth while maximizing shareholder value.
