Loop secures $66 million in new funding

Category: FIBRES

Country: United Kingdom

JV will capitalise on the potential of the rapidly developing European market for recycled fibres and plastics.

By Terrebonne, Quebec, Canada
Innovation in Textiles
18th January 2024

UK-headquartered investment firm Reed Management is to provide financing of $66 million to Loop Industries, with the aim of accelerating the production of 100% recycled polyester fibres and PET plastics in Europe.

Loop and Reed intend to form a strategic long-term partnership through the establishment of a 50/50 joint venture.

Under a non-binding memorandum of understanding (MOU), the funding will consist of an $11 million equity investment in the JV, to acquire exclusive rights to commercialisation projects, a $22 million loan from the JV to Loop, and $33 million to cover initial costs to develop projects in Europe, including Loop’s equity contribution to the previously announced JV to construct an Infinite Loop plant in Saint-Avold, France.

The partnership reflects the commitment of both parties to capitalise on the potential of the rapidly developing European market, with high demand being driven by the introduction of more stringent European plastic recycling regulations and commitments by global brands to achieve their sustainability targets.

It also allows Loop Industries to reduce the funding needs for its equity contributions to support the rollout of an increased number of facilities to be constructed in the European market using the Infinite Loop technology. Loop Industries will receive royalty and engineering fees directly from the planned facilities in Europe.

“We are delighted to form a partnership with Reed, which has been a long-standing supporter of Loop’s technology,” said Daniel Solomita, founder and CEO of Loop Industries. This will be invaluable in the next stage of Loop’s strategic development and maximise our opportunity to penetrate the European market as brands adapt to increasingly stringent regulatory requirements for plastic recycling.”

Loop Industries owns patented and proprietary technology that depolymerizes PET plastic and polyester fibre waste, including plastic bottles and packaging, carpets and textiles of any colour, transparency or condition and even ocean plastics that have been degraded by the sun and salt. The resulting monomers are filtered, purified and polymerized to create virgin-quality PET resin suitable for use in food-grade packaging and as polyester fibres.

For more info please visit: loopindustries.com

Courtesy: Innovationintextiles.com