Loop Industries – Company Overview

Business Description

• Core Technology: Proprietary and patented depolymerization process that breaks down waste PET plastic and polyester fiber into their base monomers:
  • DMT (dimethyl terephthalate)
  • MEG (monoethylene glycol)
• Main Purpose: To produce virgin-quality Loop™ branded PET resin and polyester fiber from low- and no-value waste plastics, enabling recycling that can be repeated infinitely without quality degradation.
• Environmental Focus: Accelerating the shift toward a circular economy by reducing plastic waste, diverting plastics from landfills, rivers, and oceans, and decoupling PET production from fossil fuels.

Operations & Facilities

• Primary Facility: Terrebonne, Québec, Canada
  • Operational Since: 5 years
  • Size: ~33,000 sq ft (13,000 for offices, 20,000 for R&D and operational activities)
  • Function: Produces DMT, MEG, and supplies Loop PET resin and polyester fiber.
  • Performance: Demonstrated effective depolymerization technology, supplying customers with food-grade PET and polyester fiber.

Commercialization & Partnerships

• Strategy:
  • Combine direct investments in owned facilities with licensing of proprietary technology.
  • Focus on low-cost manufacturing regions for direct investments (e.g., India).
  • Use licensing for geographic expansion (e.g., Europe).
• Key Projects:
  • India Joint Venture: 50/50 with Ester Industries Ltd.
    • Capacity: 70,000 tons/year of recycled PET and polyester fiber.
    • Progress: Engineering phase ongoing; groundbreaking expected in H2 2025; commercial operations targeted for 2027.
    • Funding: Approx. $176 million investment, with equity contributions of $1.9 million each from Loop and Ester as of Feb 2025.
  • Europe License: Sold license to Reed Societe Generale Group for one facility.
    • Payment: Upfront €10 million (~$10.4 million) plus milestone payments.
    • Ownership: Loop 10%, Reed 90%; potential to increase Loop stake to 50%.
    • Future projects: Assessing locations, subsidies, and partners; modular construction strategies in development.

Recent Product Activations

• Collaborations:
  • Hyosung & Pleatsmama: Use of Loop recycled polyester in textile products (handbags).
  • On AG (Swiss sportswear): Footwear with recycled yarn made from Loop’s technology.
• Partnership Termination: Groupe SKGC joint venture in South Korea was mutually terminated in Jan 2025.

Market & Industry

• Market Size: Estimated global PET and polyester fiber production was approximately 101 million metric tons in 2023.
• Growth: Expected to rise to 135 million metric tons by 2032 (3.5% CAGR).
• Drivers:
  • Global brands committed to circularity and incorporating recycled content.
  • Governments enforcing regulations for recycled content (e.g., EU tax on non-recycled plastics, minimum recycled content laws in North America, Europe, Asia).
  • Increasing consumer and regulatory pressure to reduce fossil fuel-based plastics.
• Target Customers: Major consumer brands, apparel companies, and retail brands integrating recycled PET into packaging and textiles.

Revenue & Financials

• Revenue (FY ended Feb 2025): ~$10.9 million
  • Main source: €10 million upfront license fee from Reed French Group
  • Additional: ~$0.4 million from engineering services (India JV)
  • Small sales of Loop PET resin (~$0.1 million)
• 2024 Revenue: ~$153,000 (mainly resin sales)
• Net Income (FY 2025): Loss of $15.1 million
• 2024 Net Loss: $21.1 million
• Employees: 49 (as of Feb 2025)
  • R&D: 20 employees
  • Engineering & Operations: 18 employees
  • Administrative: 11 employees

Intellectual Property

• Patents: Multiple patent families, with issued U.S. patents expiring between 2037-2044.
• Trademarks: Owned in several jurisdictions including US, EU, Japan, Canada.
• Technology Advantage: Operates at low temperature (<90°C), uses less energy, can process contaminated feedstocks, and produces high-purity monomers suitable for food-contact applications.

Key Risks and Regulatory Approvals

• Food contact compliance in US, EU, Canada.
• Ongoing legal investigations, including SEC subpoena.
• Protecting proprietary technology through patents, trade secrets, and licensing.
• Ability to secure financing for large-scale projects remains crucial.

Summary: Loop Industries develops and commercializes innovative chemical recycling technology that converts waste PET plastics and textiles into their virgin monomers, enabling infinite recycling of high-quality PET and polyester fiber. It currently operates a facility in Québec, is forming joint ventures in India, and has licensing agreements in Europe. The company has generated significant revenue from licensing fees and engineering services but incurs net losses, with 49 employees. The company targets big consumer brands and fashion companies driven by sustainability mandates and government regulations for recycled content.