Agreement reached to acquire site in the Gujarat state in India with strategic access to textile waste for feedstock, renewable clean energy, industrial infrastructure.
Sufficient land on site for both initial 70,000 metric ton facility and further 100,000 metric ton capacity expansion.
Total cost of the land is $10.5M which represents $5M reduction in the amount included in project cost estimate.
MONTREAL, QC / ACCESS Newswire / August 13, 2025 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop Industries", "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular economy for polyester by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today announced that its joint venture in India (the "JV") has reached an agreement to acquire a strategic site in the state of Gujarat. This represents a critical milestone in the development of the Infinite Loop manufacturing facility in India. The total cost of the land is $10.5m which represents a $5M reduction in the $176M capital cost estimate in the FEED package completed by Tata Consulting Engineers. The land is being secured with an initial deposit of $1.7 million.
Following extensive due diligence, the JV has selected a site in one of India's most industrialized regions for the Infinite Loop manufacturing facility. This strategic location near Surat, known as India's synthetic textile capital, gives the JV a direct and abundant supply of polyester textile waste feedstock.
The facility is positioned to be a model of sustainable production. It will be powered by 80% clean, renewable electricity and renewable biofuel, significantly reducing its environmental footprint. The resulting PET resin produced at the plant will have a reduction of up to 80% in carbon emissions compared to traditional virgin, petroleum-based PET[1].
The 93-acre site, strategically located within a Petroleum, Chemicals and Petrochemicals Investment Region ("PCPIR"), is large enough to support both an initial 70,000 metric ton per year facility as well as a planned further expansion of an additional 100,000 metric tons per year once the facility is fully operational. The PCPIR designation not only expedites the permitting process, which Loop expects to be completed by the end of 2025, but also provides access to the region's skilled labor force in the petrochemical industry. Additionally, the site's proximity to a deep-water seaport enables cost-effective logistics for export of all resin produced at the facility.
"The land acquisition in Gujarat is a foundational step that positions the Infinite Loop India project for groundbreaking and construction." said Adel Essaddam, COO at Loop Industries. "This site checks every box from an infrastructure, logistics, and feedstock availability standpoint. It sets the stage for deploying our technology efficiently and competitively, while providing the footprint needed for a planned 100,000 metric ton further capacity expansion once the initial facility is operational."
[1] Based on a 2023 Life Cycle Assessment of an Infinite Loop facility in India completed by Franklin Associates, a division of ERG, and commissioned by Loop, which compares kg for kg Loop PET vs. Virgin PET. CO2 savings are compared to the production of virgin PET made from fossil fuels and the avoided incineration of waste used as a feedstock.
About Loop Industries
Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles packaging, and textiles such as carpets and clothing into its base building block monomers DMT and MEG. The monomers are separated, purified and polymerized to create virgin-quality Loop and Twist branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop and Twist PET can be recycled infinitely without degradation of quality, helping to close the plastic loop. Loop Industries is committed to contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future.
Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP."
For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries
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For More Information:
Investor Relations:
Kevin C. O'Dowd, Investor Relations
Loop Industries, Inc.
+1 617-755-4602
kodowd@loopindustries.com
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about the anticipated completion of the land acquisition in Gujarat, expected permitting and construction timelines, potential capacity expansions, and the expected operational, logistical, and environmental benefits of the site and joint venture in India. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results may differ materially from the projections discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could materially affect these forward-looking statements and/or projections include, among other things: (i) our ability to commercialize our technology and products, (ii) the status of our relationships with our partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) our ability to continue as a going concern, (vii) engineering, contracting, and building our manufacturing facilities, (viii) our ability to scale, manufacture, and sell our products and to license our technology in order to generate revenues, (ix) our proposed business model and our ability to execute it, (x) our ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (xi) our joint venture projects and our ability to recover certain expenditures in connection to them, (xii) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xiii) public health issues, such as disease epidemics, which may lead to reduced access to capital markets, supply chain disruptions, and government-imposed business closures, (xiv) war, regional tensions, and economic or other conflicts including trade disputes and increasing protectionist measures that could impact market stability and our business; (xv) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xvi) the outcome of any SEC investigations or class action litigation filed against us, (xvii) our ability to hire and/or retain qualified employees and consultants, (xviii) other events or circumstances over which we have little or no control, and (xix) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 28, 2025 filed with the SEC and in Loop's subsequent filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, unless otherwise required by law.
SOURCE: Loop Industries
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https://www.accessnewswire.com/newsroom/en/clean-technology/loop-industries-india-joint-venture-reaches-agreement-to-acquire-strategic-site-in-1060583
