Loop Industries Seeks To Bring New Era In Sustainable Plastics
The company recently entered into a multi-year supply agreement with PepsiCo and a joint venture with Indorama Ventures.
Loop-branded polyester resin allows consumer-goods companies to meet and exceed their stated sustainability goals and circular ambitions, the company says.
PepsiCo will purchase production capacity from Loop’s joint venture facility in the U.S. and incorporate Loop PET plastic, which is 100% recycled material, into its product packaging by early 2020.
Loop Industries is seeking to bring to market what they call the ‘upcycled’ plastics economy. Loop has emerged with truly transformational technology that allows no and low value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality Loop PET plastic.
Loop announced a joint venture with petrochemical company Indorama Ventures Public Company Limited to manufacture and commercialize sustainable polyester resin to meet the growing global demand from beverage and consumer packaged goods companies. This partnership brings together Indorama Venture’s manufacturing footprint and Loop’s proprietary science and technology.
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, Indorama Ventures and Loop Industries will be able to perpetually recycle the ever increasing amounts of PET plastic and polyester fiber proving the promise of and encouraging the shift to a circular economy.
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 fiber with plans to begin commercial production in Q1 2020. The production from the facility will be fully subscribed by leading global consumer brands.
Following that announcement, Loop entered a multi-year supply agreement that will enable PepsiCo to purchase production capacity from Loop's joint venture facility in the U.S. and incorporate Loop PET plastic into its product packaging by early 2020.
As one of the largest purchasers of recycled PET plastic in the consumer goods space, PepsiCo has identified Loop PET as a commercially viable technology to expand the amount of recycled content in its product packaging and help meet its sustainability ambitions and consumer needs.
"Loop's technology enables PepsiCo to be a leading force in ensuring plastic packaging need never become waste," says Mehmood Khan, vice chairman and chief scientific officer, PepsiCo. "This partnership represents a step-change that will empower PepsiCo in our drive towards creating a circular economy for plastics."
"We are very proud to supply PepsiCo with Loop branded PET plastic," said Daniel Solomita, founder and CEO of Loop Industries. "Working with a global food and beverage giant like PepsiCo will further establish the value proposition of the Loop brand and mission—to accelerate the world's shift toward sustainable plastic and away from the traditional, take, make and dispose economy."
For more about Loop, check out my interview with Loop’s Chief Growth Officer Nelson Switzer here.
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