The company will have the exclusive right to commercialize Loop’s technology in the Asian market for a specified period, and Loop will license its technology in exchange for an annual royalty for each commercial plant.
(“Loop”), a clean technology company whose mission is to accelerate a circular plastic economy by manufacturing 100% recycled polyethylene terephthalate (“PET”) plastic and polyester fiber, and SK Geo Centric Co Ltd. (“SKGC”), a South Korean subsidiary of SK Group, today announced the signing of a definitive joint venture agreement (“JVA”) to deploy Loop technology in the Asian market through multiple commercial manufacturing facilities. SKGC will own 51% of the company, which will be based in Singapore, and Loop the remaining 49%. Under the agreement, the company will have the exclusive right to commercialize Loop’s technology in the Asian market for a specified period, and Loop will license its technology in exchange for an annual royalty for each commercial plant.
The first planned commercial manufacturing facility with Infinite Loop technology, located in Ulsan, South Korea, will have an annual capacity of 70,000 metric tons per year of PET Loop resin for polyester fiber and packaging applications, and construction will be expected. starting in 2023 and ending in late 2025. In addition to Ulsan’s Infinite Loop, the two partners have outlined plans that aim to build a minimum of three more commercial manufacturing facilities across Asia by 2030. Loop and SKGC have partnered with SK ecoengineering. , a subsidiary of the SK Group which brings a wealth of experience as an EPC contractor, for the engineering and construction of commercial manufacturing facilities.
Asia is the world’s largest market for PET plastic and polyester fiber and is at the center of global manufacturing, which presents an attractive opportunity for the company. Loop’s innovative technology can bring true circularity to PET plastic and polyester fiber, helping to mitigate the global environmental impact of petrochemical abuse and plastic waste. By converting low-value PET plastic waste and polyester fiber waste into Loop Loop 100% recycled PET resin, Loop technology has the potential to transform the Asian PET plastic and polyester fiber market, helping to reduce dependence on finite resources while decreasing. impact on the environment, such as air and water pollution. The deployment of the Loop technology in the Asian market would bring about a much-needed change in the way PET is managed and manufactured in the region, and would help meet the growing demand for recycled PET.
The signed agreement marks the next step in the commitment of both partners to reduce plastic waste and accelerate a true circular economy for plastics. This is a testament to Loop’s mission to provide a global market with Loop virgin PET resin that can be infinitely recycled. For SKGC, this company marks the beginning of a new era of sustainable and circular practices in a market that is looking for environmentally friendly solutions. This JVA represents a major step towards creating a sustainable future by increasing the availability of recycled PET throughout the Asian market.
“It is our great pleasure to join this important partnership to commercialize Loop technology in Asia. We will strive to successfully complete the Ulsan Advanced Recycling Complex, which will serve as an important springboard for future expansion across Asia,” Kyungsoo We said. , CEO of SKGC. “Through this JV agreement, we hope that the two partners will make great strides towards realizing a circular plastic economy and realizing our ‘Green for Better Life’ vision.”
“We are very proud to partner with SKGC to create a globally accessible and infinitely recyclable circular economy for PET plastics and polyester fibers. Loop and SKGC have worked closely together for many years and the two companies complement each other very well. Yes , provide different areas of expertise to achieve our common goal of bringing an end-to-end solution and a compelling value proposition to our customer base,” said Loop founder and CEO Daniel Solomita. “By expanding Loop’s manufacturing footprint in Asia, our global CPG brand customers who use polyester fibers for textiles will have the opportunity to incorporate Loop brand materials into their products and create circularity for textile waste by recycling it in manufacturing facilities ours.”.
This press release contains “forward-looking statements” as defined in the US Privacy Litigation Reform Act of 1995. , “anticipate”, “should”, “may”, “project”, “predict”, “estimate”, “intend”, “believe”, “expect”, “potential” or “continue”, negative in terms tell them or similar words. These forward-looking statements include, without limitation, statements about Loop’s market opportunities, its strategy, the ability to improve and expand its capabilities, competition, planned activities and expenses as Loop pursues its business plans, the adequacy of available cash resources its, regulatory. compliance, plans for future growth and future operations, the size of the market Loop is targeting, market trends, and the effectiveness of the Loop’s internal control over financial reporting. Forward-looking statements are not guarantees of future results, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop’s control, and cannot be predicted or quantified, and accordingly, current results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation, risks and uncertainties associated with, among other things.
More detailed information about Loop and the risk factors that may affect the forward-looking statements can be found in Loop’s filings with the SEC. Investors and security holders are encouraged to read these documents for free on the SEC’s website at https://www.sec.gov/. Loop undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.