Loop Industries, Inc., a leading clean technology company dedicated to fostering a circular plastics/fiber economy through the production of 100% recycled polyethylene terephthalate (PET) plastic and polyester fiber, has entered into a significant partnership with Ester Industries Ltd. ("Ester"), a prominent player in India's Polyester Films and Specialty Polymers manufacturing sector. Together, they are establishing a 50/50 joint venture in India known as the India JV, aimed at constructing and operating a groundbreaking Infinite Loop India manufacturing facility.
The primary objective of this collaboration is to introduce a pioneering product lineup comprising recycled dimethyl terephthalate (rDMT), recycled mono-ethylene glycol (rMEG), and specialty polymers within India. Leveraging the innovative Infinite Loop technology, which outshines traditional mechanical PET recycling methods, the facility promises substantial advantages.
Capitalizing on Synergies: A Strategic Alliance for Sustainable Solutions
This partnership builds upon the strong working relationship between Loop and Ester, with Ester having produced Loop PET for Loop's global brand customers over the past four years. The India JV amalgamates Loop's groundbreaking technology and established global clientele with Ester's nearly four decades of specialized polymer production expertise and local know-how, including proficient sourcing of PET plastic and Polyester fiber waste feedstocks.
The global market for DMT and MEG specialty chemicals is estimated at a staggering US$28 billion, with a projected 3.7% compound annual growth rate (CAGR) through 2033. Recent plant closures in Europe have led to a global shortage of DMT, intensifying the demand for low-carbon alternatives. The Infinite Loop India facility is poised to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually, with Ester undertaking toll conversion of these into various grades of specialty polymers. Notably, the facility is expected to slash carbon emissions by up to 70% compared to conventionally manufactured DMT and MEG, offering chemical companies a seamless, circular alternative to help meet their sustainability objectives.
Pioneering Growth in India's Polymer Industry
The product offerings from the Infinite Loop India facility mark a strategic expansion into a low-cost manufacturing environment, complementing Loop's existing PET plastic and polyester fiber business. This expansion is anticipated to fuel growth by catering to the burgeoning demand across diverse industries such as electronics, automotive, textiles, cosmetics, and packaging.
Harnessing the Infinite Loop technology and existing engineering package, the India facility aims to commence groundbreaking by the year's end, with advanced feedstock sourcing from abundant textile waste in India. The partners have also engaged external expertise to secure the facility's land, with construction slated for completion by the end of 2026 and commercial operations set to kick off in early 2027. The India JV promises attractive economic returns without the necessity for significant sustainability-linked premium pricing, with an estimated total capital investment of approximately US$165 million.
Leadership Vision: Aligning Values for Sustainable Growth
Arvind Singhania, Chairman, and CEO of Ester Industries Ltd., emphasized the alignment of values and shared commitment to circularity and sustainability, stating that the partnership with Loop reaffirms their dedication to advancing sustainable solutions in the polymer industry.
Daniel Solomita, Founder, and CEO of Loop Industries, highlighted the strategic alignment between Loop and Ester, underscoring the immense growth potential in India's rapidly expanding economy. He emphasized the partnership's role in driving sustainable growth, optimizing returns, and maximizing shareholder value, while also positioning Loop to capitalize on operating in a cost-effective manufacturing environment.
In essence, the Loop-Ester partnership marks a significant milestone in the quest for sustainable polymer production, offering a transformative solution that addresses both environmental concerns and market demands.