Loop Industries makes strategic partnership with South Korean chemical firm
SK Global Chemical Co. Ltd. will also acquire a 10 per cent equity stake in Montreal-based Loop.
Canadian clean technology company Loop Industries Inc. is partnering with South Korea’s SK Global Chemical Co. Ltd. (SKGC) to accelerate the commercialization of Loop’s sustainable PET plastic and polyester fibre manufacturing technology throughout Asia.
In a June 23 news release, Loop and SKGC – which is a subsidiary of South Korea’s SK Group – say they intend to form a joint venture, with SKGC owning 51 per cent of the joint venture and Loop owning 49 per cent.
Initial discussions between the partners contemplate beginning preparation on a first facility located in South Korea in the first half of 2022 and the construction of four facilities in Asia by 2030, with projected combined consumption of waste PET plastic and polyester fibre amounting to approximately 400,000 tons. Once fully operational, the news release said, these four facilities could claim an annual savings of 632,100 metric tons of CO2, which is the equivalent of more than 2.5 billion kilometers driven by an average passenger vehicle or ~270 million litres of gasoline consumed.
As part of the agreement, SKGC will make a $56.5 million strategic equity investment in Loop, purchasing 4.71 million shares of common stock of Loop, amounting to a 10 per cent stake in the company.
The investment will be used by Montreal-based Loop to fund its planned Infinite Loop manufacturing facility in Bécancour, Que.
Montreal-based Loop’s technology allows for waste PET plastic and polyester fibre to be upcycled into virgin-quality PET using low heat and no added pressure. According to Loop, this low energy process allows it to eliminate contaminants, such as dyes, additives, and other impurities, preventing otherwise unrecyclable materials like coloured and contaminated plastics or textiles from ending up in landfills and natural areas.
“We are excited to collaborate with SKGC to commercialize our technology and play a meaningful role together to mitigate the environmental impact of global plastic waste and help consumer brands meet their stated goals for achieving high rates of recycled content in their products,” said Loop CEO and founder Daniel Solomita.