Loop Industries and Ester Industries Forge India Joint Venture to Drive Circular Plastics Economy
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- Published: Friday, 03 May 2024 15:29
Loop Industries, Inc. (NASDAQ: LOOP), a prominent clean technology company committed to advancing a circular plastics/fiber economy, recently sealed an agreement with Ester Industries Ltd. ("Ester"), a leading manufacturer of Polyester Films and Specialty Polymers in India, to establish a 50/50 India joint venture ("India JV"). The primary objective of this collaboration is to establish and operate an Infinite Loop India manufacturing facility, which will specialize in producing a unique product line of lower carbon footprint recycled dimethyl terephthalate ("rDMT"), recycled mono-ethylene glycol ("rMEG"), and specialty polymers in India.
The India JV represents a significant stride towards realizing Loop's mission of accelerating the adoption of recycled polyethylene terephthalate ("PET") plastic and polyester fiber within a circular economy framework. Leveraging the Infinite Loop technology, which offers substantial advantages over traditional mechanical PET recycling, the facility aims to address the pressing need for sustainable alternatives in the plastics industry.
Loop and Ester's collaboration is built upon a foundation of mutual trust and established working relations. Ester has been producing Loop PET for Loop's global brand customers for the past four years, demonstrating a successful partnership in delivering high-quality recycled materials to the market.
The joint venture capitalizes on the complementary strengths of both entities. Loop brings its innovative technology and extensive global customer base to the table, while Ester contributes nearly four decades of specialized polymer production experience, operational proficiency, and local expertise in India. This synergy positions the India JV as a formidable player in the region's polymer industry, with a strong focus on sustainability and innovation.
The global market for dimethyl terephthalate (DMT) and mono-ethylene glycol (MEG) specialty chemicals is significant, estimated at US$28 billion and projected to grow steadily at a 3.7% compound annual growth rate (CAGR) through 2033. However, recent plant closures in Europe have led to a shortage of DMT, amplifying the demand for low-carbon alternatives. The Infinite Loop India facility is poised to address this demand, aiming to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually.
One of the standout features of the planned facility is its potential to significantly reduce carbon emissions by up to 70% compared to virgin DMT and MEG manufactured from fossil fuels. This eco-friendly approach aligns with the sustainability goals of chemical companies, offering them a simple yet effective circular alternative to conventional production methods.
As the world increasingly prioritizes sustainability and environmental responsibility, initiatives like the Loop-Ester India JV demonstrate a commitment to driving positive change in the plastics industry. By harnessing innovation, collaboration, and cutting-edge technology, these ventures pave the way for a more sustainable future, where circularity and resource efficiency are at the forefront of industry practices.