Loop Industries to acquire strategic site in Gujarat for PET facility

MONTREAL - Loop Industries, Inc. (NASDAQ:LOOP), a recycling technology company whose stock has surged over 41% in the past six months, announced Wednesday that its Indian joint venture has reached an agreement to acquire a 93-acre site in Gujarat state for $10.5 million, representing a $5 million reduction from the initial capital cost estimate. According to InvestingPro analysis, the company, currently valued at $75.39 million, appears undervalued based on its Fair Value assessment.

The site, located near Surat in a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), will house Loop’s planned Infinite Loop manufacturing facility for recycled polyethylene terephthalate (PET) plastic and polyester fiber. The land acquisition has been initiated with a $1.7 million deposit. The company maintains a strong liquidity position, with InvestingPro data showing a healthy current ratio of 2.81 and more cash than debt on its balance sheet.

The location provides strategic access to polyester textile waste feedstock from Surat, known as India’s synthetic textile capital. The site offers sufficient space for both the initial 70,000 metric ton annual capacity facility and a planned expansion of an additional 100,000 metric tons.

According to the company, the facility will be powered by 80% clean, renewable electricity and biofuel, with the resulting PET resin expected to have up to 80% lower carbon emissions compared to traditional virgin PET.

Loop Industries Chief Operating Officer Adel Essaddam called the acquisition "a foundational step" for the project, noting the site’s advantages in infrastructure, logistics, and feedstock availability.

The PCPIR designation is expected to expedite the permitting process, which the company anticipates completing by the end of 2025. The site’s proximity to a deep-water seaport will facilitate exports of the produced resin.

Loop Industries specializes in technology that depolymerizes waste PET plastic and polyester fiber into building block monomers that can be purified and polymerized to create virgin-quality PET resin.

This article is based on a press release statement from Loop Industries.

In other recent news, Loop Industries has announced the launch of Twist™, a circular polyester resin crafted entirely from textile waste. This new product aims to provide a sustainable alternative for the fashion and textile industries. Loop Industries utilizes its patented depolymerization technology to break down polyester textile waste into base monomers. These monomers are then purified and repolymerized into a resin that is chemically identical to virgin polyester. This development highlights Loop Industries’ commitment to sustainability and innovation in materials technology. The company’s press release emphasized the potential environmental benefits of using textile waste as a resource. This launch represents a significant step in addressing waste management and resource utilization in the textile sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.