Indorama and Loop to partner for sustainable PET from plastic waste in the US

Thailand-headquartered integrated PET/polyester supplier Indorama Ventures and Loop Industries, a Canadian start-up recycling technology innovator in sustainable plastic resin and polyester, are to work in a joint venture to manufacture and commercialise sustainable polyester resin to meet the growing global demand from beverage and consumer packaged goods companies.

It is expected that Indorama will retrofit one of its existing plants in the US for the recycling joint venture, using Loop's depolymerisation technology. Loop’s technology breaks down the plastic molecules to basic monomers DMT and MEG which can then be used together to produce PET.

The 50/50 joint venture will have an exclusive world-wide license to use Loop’s technology to produce 100% sustainably produced PET resin and polyester fibre with plans to begin commercial production in Q1 2020. The production from the facility will be fully subscribed by leading global consumer brands, say the companies.

This partnership brings together Indorama’s world-class manufacturing footprint and Loop’s proprietary science and technology for the ‘circular’ economy for 100% sustainable and recycled PET resin and polyester fibre.

The Indorama Ventures/Loop Industries partnership launches a commercial solution for consumer packaged goods companies in response to the rapid growth in global plastic consumption for which there is a great need to responsibly collect and reuse these materials. Through this joint venture, the companies say they will be able to perpetually recycle the ever increasing amounts of PET plastic and polyester fibre encouraging the shift to a circular economy.

Commenting on this new venture, Group CEO of Indorama Ventures, Aloke Lohia, said, “At Indorama Ventures, we continue to pursue the right opportunities to fill gaps that are intrinsic to our sustainable and profitable business by deploying resources in order to support the circular economy. This joint venture with Loop Industries emphasises our belief in recycling and is aimed at investing in new technologies that can steer further our aspiration of being a world-class chemical company making great products for society.”

Public-listed Indorama has global manufacturing footprint across Africa, Asia, Europe and the Americas. The company’s portfolio comprises High Value-Added (HVA) categories of polymers, fibres and packaging, selectively integrated with self-manufactured ethylene oxide/glycols and PTA where economical. It has approx. 16,000 employees worldwide and consolidated revenue of US$8.4 billion in 2017.

(PRA)

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