Business
Loop Industries Announces Signed Letter of Intent With On AG to Secure Volumes From Planned Infinite Loop(TM) Manufacturing Facility in Ulsan, South Korea
MONTREAL, QC / ACCESSWIRE / May 15, 2023 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company" or "Loop"), a clean technology company whose mission is to
About this update from Loop Industries, Inc.
[{"type":"text","content":"MONTREAL, QC / ACCESSWIRE / May 15, 2023 / Loop Industries, Inc. (Nasdaq:LOOP) (the \"Company\" or \"Loop\"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate (\"PET\") plastic and polyester fiber and On AG (\"On\"), a sportswear brand and a subsidiary of On Holding AG, today announced a Letter of Intent (\"LOI\") has been signed by On to secure volumes of 100% recycled virgin quality Loop™ PET resin from the upcoming Asian Infinite Loop™ manufacturing facility in Ulsan, South Korea, which Loop is planning with its strategic partner SK Geo Centric. The Ulsan manufacturing facility is anticipated to break ground by end of this year.The signed LOI follows a two-year period of collaboration between Loop and On, throughout which time a technical due diligence was completed, validating Loop's technology and Loop™ PET resin was tested in On's product. This partnership will provide On the ability to produce sustainable footwear and apparel using recycled materials and without the need for polyester fiber created from fossil fuels, which helps to reduce PET waste and the manufacturing footprint for On.\"Circularity is a main pillar in On's sustainability process. We are happy to see that Loop is bringing their technology to commercial scale,\" said Ilmarin Heitz, Head of Innovation at On. \"This marks another huge step towards closing the fiber-to-fiber loop within the textile industry.\"\"Loop's technology enables fiber to fiber recycling, providing brands like On with a closed-loop solution to their supply chain,\" said Giovanni Catino, Vice President of Sales and Business Development. \"We anticipate that 60% of the feedstock utilized at our planned commercial manufacturing facility in Ulsan to come from polyester fibers which presents a significant opportunity for circularity for this material.\"Loop Industries is leading the way in sustainable and circular solutions for PET waste, allowing materials to be infinitely recycled without loss of quality or performance. Loop's breakthrough technology enables low value PET waste to be upcycled into 100% recycled virgin-quality Loop™ PET resin which can be used in plastic products and food-grade packaging as well as polyester fiber applications. In addition to low value PET plastic waste, Loop al...