Bangkok-based Indorama Ventures Public Co. Ltd., a leading petrochemical company, and Montreal-based Loop Industries Inc., which has developed depolymerization technology that produces dimethyl terephthalate (DMT) and mono ethylene glycol (MEG) from end-of-life plastic feedstocks, have announced a joint venture to manufacture and commercialize what they claim is sustainable polyester resin to meet the growing global demand from beverage and consumer packaged goods companies. Both companies have a 50 percent stake in the joint venture.
This partnership combines Indorama Venture’s manufacturing footprint with Loop’s proprietary science and technology to produce recycled polyethylene terephthalate (PET) resin and polyester fiber. Through this joint venture, the companies say they will be able to perpetually recycle the growing amounts of PET and polyester fiber.
The companies say the joint venture will have an exclusive worldwide license to use Loop’s technology to produce PET resin and polyester fiber from end-of-life materials with plans to begin commercial production in the first quarter of 2020.
“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,” Group CEO of Indorama Ventures Aloke Lohia says. “This joint venture with Loop Industries emphasizes 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.”
“We are excited to launch this partnership with Indorama Ventures, who provide a global leadership platform in petrochemical manufacturing and a shared commitment to sustainability,” says Daniel Solomita, founder and CEO of Loop Industries. “This joint venture combines each of our companies’ area of expertise so that we may both play a leading role in the global shift by business and consumers to the circular economy.”
Solomita adds, “This is a first strategic step in our global commercialization plan and mission to accelerate the world’s shift toward sustainable plastic and away from the traditional, take, make and dispose economy.”