Loop Industries, a company that recycles PET plastics and polyester fiber into recycled polyethylene terephthalate resin and polyester fiber, has signed a Letter of Intent (LOI) with On, a sportswear brand, to supply the latter with 100% recycled virgin quality Loop PET resin from the upcoming Asian Infinite Loop manufacturing facility in Ulsan, South Korea.

This partnership allows On to create sustainable footwear and apparel using recycled materials, eliminating the need for polyester fiber derived from fossil fuels. The signed LOI comes after a two-year collaboration between the two companies, during which technical due diligence was conducted to validate Loop's technology and Loop PET resin tested in On's products.

Analyst QuickTake: Loop Industries has been entering partnerships to extend the market reach of its 100% recycled, virgin-quality Loop PET resin. Last month, the company partnered with Garnier , resulting in the launch of Garnier's first Micellar Cleansing Water All-In-1 bottle made from plastic waste. Furthermore, Loop Industries has formed partnerships with renowned beauty brands such as L'Oreal and L'occitane, as well as prominent food and beverage brands including PepsiCo, Coca-Cola, and Danone.