Business
SK global chemical to Acquire 10 Percent Equity Stake in Loop Industries, Companies Announce Strategic Partnership to Bring Sustainable and Circular Plastics to Asian Market
Memorandum of Understanding outlining terms of Joint Venture to build Infinite Loop™ facilities in AsiaEquity investment of $56.5 million will be used by Loop
About this update from Loop Industries, Inc.
[{"type":"text","content":"Memorandum of Understanding outlining terms of Joint Venture to build Infinite Loop™ facilities in AsiaEquity investment of $56.5 million will be used by Loop towards funding its planned Canadian Infinite Loop™ facility in Bécancour, QuébecSK global chemical to become second largest shareholderLoop Industries to hold corporate update call at 11:30am Eastern Time todayMONTREAL, QC / ACCESSWIRE / June 23, 2021 / Loop Industries (NASDAQ:LOOP) (\"Loop\" or \"The Company\"), a leading innovator in clean technology whose mission is to accelerate a sustainable plastics economy, today announced that it intends to form a strategic partnership with SK global chemical Co. Ltd. (\"SKGC\"), a subsidiary of South Korea's SK Group, one of Asia's largest conglomerates, to accelerate the commercialization of Loop's sustainable polyethylene terephthalate (\"PET\") plastic and polyester fiber manufacturing technology throughout Asia.Loop's patented technology allows for waste PET plastic and polyester fiber to be upcycled into virgin-quality PET using low heat and no added pressure. This low energy process allows Loop to eliminate contaminants, such as dyes, additives, and other impurities, preventing otherwise unrecyclable materials like colored and contaminated plastics or textiles from ending up in landfills and natural areas.Joint Venture PartnershipLoop and SKGC intend to form a joint venture with exclusivity to build sustainable PET plastic and polyester fiber manufacturing facilities throughout Asia, which accounts for approximately 60 percent of the world's population, making it a key market in terms of plastic manufacturing, consumption and waste. Under the terms of the Memorandum of Understanding (\"MOU\") for the proposed joint venture, SK global chemical will own 51 percent of the joint venture and Loop will own 49 percent. Loop will also receive a recurring annual royalty fee as a percentage of revenue from each facility for the use of its technology.SKGC has today issued a separate press release discussing Loop's technology and SKGC's objectives for the Joint Venture. As stated in SKCG's press release, initial discussions between the partners contemplate beginning preparation on a first facility located in South Korea in the first half of 2022 and the construction of four facilities in Asia by 2030, with projected combined consumptio...