Indorama and Loop Form PET Recycling JV
Leading PET producer Indorama Ventures is linking up with Canadian recycling technology company Loop Industries to manufacture and commercialize 100% sustainable polyester resin to meet growing global demand from beverage and consumer packaged goods companies.
The 50:50 joint venture will have an exclusive worldwide license to use Loop’s depolymerization technology to produce sustainable PET resin and polyester fiber. Plans are for commercial production to start in Q1 2020. The companies did not disclose where the facility will be located, although added that output will be fully subscribed by leading global consumer brands.
“This joint venture combines each of our companies’ area of expertise so that we may both play a leading role in the global shift by business and consumers to the circular economy,” said Daniel Solomita, founder and CEO of Loop Industries. “This is a first strategic step in our global commercialization plan and mission to accelerate the world’s shift toward sustainable plastic and away from the traditional take, make and dispose economy.”
In July, French personal care group L’Oreal announced its intention to be the first major cosmetic company to use packaging incorporating Loop PET in Europe and the US.
This was followed by PepsiCo’s announcement in October that it had entered into a multi-year supply agreement to buy product from Loop’s plant in the US and incorporate its sustainable PET resin in its packaging by early 2020.