Loop Industries, a company that recycles PET plastics and polyester fiber into recycled polyethylene terephthalate resin and polyester fiber, and SK Geo Centric (SKGC), a Seoul-based company that manufactures and distributes petrochemical products, have signed a definitive joint venture agreement to deploy Loop's technology in the Asian market through multiple commercial manufacturing facilities.

The venture will be headquartered in Singapore, with SKGC owning 51% and Loop owning 49%. As per the agreement, the venture will have exclusive rights to commercialize Loop's technology in Asia for a certain period, and Loop will license its technology for an annual royalty for each of the commercial plants. The two companies plan to build a minimum of three commercial manufacturing facilities in Asia by 2030 by partnering with SK Ecoengineering, a subsidiary of the SK Group, for the engineering and construction of the facilities.

The two companies will construct the first commercial manufacturing facility in Ulsan, South Korea, using Loop's technology to produce 70,000 metric tons per year of Loop PET resin for packaging and polyester fiber applications. The facility is expected to start construction in 2023 and be completed by the end of 2025.

Analyst QuickTake: Loop Industries is working on expanding its footprint globally. This announcement follows Loop Industries' plans to build a manufacturing facility to produce 100% recycled polyethylene terephthalate plastic and polyester fiber with a planned capacity of 70,000 metric tons annually at the Chemesis industrial platform in France , with construction to begin in 2025 and plant commissioning in 2027.