Joint Venture for Circular Plastics

Joint Venture for Circular Plastics Loop Industries and SK Geo Centric Sign Joint Venture Agreement to Commercialize Loop Technology in the Asian Market Loop Industries Inc, a clean technology company with a mission to accelerate the circular plastics economy by producing 100% recycled polyethylene terephthalate (PET) plastic and polyester fiber, and SK Geo Centric Co Ltd (SKGC), a subsidiary of South Korea-based SK Group, have announced they have signed a definitive Joint Venture Agreement (JVA) to distribute Loop's technology across multiple commercial production facilities in the Asian market. The joint venture, which will be headquartered in Singapore, will be 51% owned by SKGC and 49% by Loop. Under the JVA, the joint venture will have exclusive rights to commercialize Loop's technology in the Asian market for a defined period, and Loop will license its technology for each commercial facility in exchange for annual royalty payments. The first planned commercial production facility featuring Infinite Loop™ technology, located in Ulsan, South Korea, with its foundation set in 2023 and construction expected to be completed by the end of 2025, will have the capacity to supply 70,000 mt of Loop™ PET resin annually for packaging and polyester fiber applications. In addition to Infinite Loop™ in Ulsan, the two partners outlined plans targeting the construction of at least three additional commercial production facilities in Asia by 2030. Loop and SKGC have partnered with SK ecoengineering, a subsidiary of SK Group that brings extensive expertise as an EPC contractor for the engineering and construction of commercial production facilities. Asia is the largest global market for PET plastic and polyester fiber and is positioned at the center of global manufacturing, making it an attractive opportunity for the joint venture. Loop's innovative technology can bring genuine circularity to PET plastic and polyester fibers while helping to reduce the global environmental impact of excessive petrochemical consumption and plastic waste. Loop's technology, which converts low-value PET plastic and polyester fiber waste into 100% recycled virgin-quality Loop™ PET resin, has the potential to transform the Asian PET plastic and polyester fiber market, reducing dependence on limited resources while also decreasing environmental impacts such as air and water pollution. The use of Loop's technology in the Asian market will bring much-needed change in how PET is managed and produced in the region and will help meet growing demand for recycled PET. The signed Joint Venture Agreement (JVA) marks the next step in both partners' commitment to reducing plastic waste and accelerating a genuine circular plastics economy. This is testament to Loop's mission to supply the global market with infinitely recyclable virgin-quality Loop™ PET resin. For SKGC, this joint venture initiates a new era of sustainable and circular applications in a market seeking environmentally friendly solutions. This JVA represents a significant step toward creating a sustainable future by increasing the availability of recycled PET in the Asian market. Source