MONTREAL, QC AND GURUGRAM, INDIA / ACCESS Newswire / May 19, 2026 / Loop Industries, Inc. (NASDAQ:LOOP) today announced that its joint venture, Ester Loop Infinite Technologies Private Limited ("ELITe"), has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to support the development of Loop's India manufacturing platform.
Government Support Facilitates Commercial Deployment
The agreement is expected to facilitate permitting, infrastructure coordination, and administrative processes for the project, which represents Loop's first large-scale commercial deployment.
The project is situated in Gujarat's Bharuch industrial corridor, providing access to established infrastructure, logistics, and nearby sources of low-cost feedstock. The site has been secured with sufficient capacity to support multiple facilities, enabling a phased expansion strategy at the location.
The initial facility is designed for approximately 70,000 tonnes of annual production capacity, with the ability to expand through a second facility of approximately 100,000 tonnes at the same site.
Lower Estimated Capital Cost Improves Project Economics
Based on current engineering assumptions and foreign exchange rates, the estimated capital cost for the initial India facility is currently expected to be approximately US$165-170 million, compared to prior estimates of approximately US$190 million. The improvement primarily reflects favorable foreign exchange movements, ongoing procurement refinement, and land-related cost considerations.
"This agreement will assist us as we move from planning toward execution," said Daniel Solomita, Loop's Chief Executive Officer. "With government alignment and expansion capacity already secured, we are building a scalable commercial platform positioned to support growing global demand for virgin-quality recycled polyester. And the reduced capital cost will improve our return on investment."
About Loop Industries
Loop Industries is a clean technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber. Loop's patented technology enables the recycling of low-value PET plastic and polyester waste into high-purity monomers, which can be repolymerized into food-grade packaging and textiles.
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 timing and development of Loop's projects in India and Europe; expected progress and outcomes related to project debt and equity financing efforts; potential engineering services revenues and milestone payments; and the expected benefits of Loop's offtake agreement with Nike, strategic alliance with Reed Societe Generale Group, and other current or prospective partnerships. 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. These risks and other factors include, but are not limited to, those listed under "Risk Factors." Additional 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. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's 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.
For More Information:
Investor Relations:
Kevin C. O'Dowd, Investor Relations
Loop Industries, Inc.
+1 617-755-4602
kodowd@loopindustries.com
SOURCE: Loop Industries, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/clean-technology/loop-industries-secures-gujarat-government-alignment-supporting-first-commercial-d-1168200
