SK Geo Centric (SKGC) and Loop Industries (Loop) announced the successful completion of a technical due diligence conducted by SKGC and the validation of Loop’s technology.
Loop Industries is a clean technology company that manufactures 100% recycled polyethylene terephthalate (PET) plastic and polyester fiber, with a mission to accelerate a circular plastics economy.
The technical due diligence, executed by SKGC, includes the validation of Loop's technology in the depolymerization of low value PET waste, the purification of monomers, and the polymerization into virgin-quality Loop PET resin and polyester fiber.
The due diligence also validates key parameters of Loop's technology, such as production yields, operational stability, quality of the outputting monomers, and overall performance of the production facility. The technical due diligence report, signed by both parties, confirms the effectiveness and robustness of Loop's innovative technology.
SKGC acquired a 10% equity stake in Loop in August 2021 and is committed to commercializing the Infinite Loop technology in Asia. The partners are planning several jointly built large-scale manufacturing facilities, with the first facility anticipated to break ground in Ulsan, South Korea, in 2023. The evaluation of the second Asian facility has already begun, and SKGC and Loop are currently finalizing the definitive joint venture agreement.
SKGC and Loop are also working together with SK ecoengineering (SKEE), a subsidiary of the SK Group, who brings considerable experience and proficiency as an EPC contractor, on the engineering services for their Asian manufacturing facilities. The Asian market represents a tremendous opportunity for growth due to its large population centers and being the main hub for the polyester fiber supply chain for textiles.
"We are confident that Loop Industries' cutting-edge technology of PET recycling will be a winning tech in the industry," said Ham Hyeong-taek, Chief Technology Officer of SK Geo Centric. "We are currently focused on the planning of our first manufacturing facility in Ulsan, South Korea, where we will implement Loop's technology."
"SK Geo Centric has closely studied Loop's technology that depolymerizes PET waste," added Kim Tae-jin, the leader of the Environmental R&D center of SK Innovation. "With our combined efforts, we aim to utilize and increase the use of a more diversified selection of PET feedstock which will drive circularity for this material."
"The technical due diligence, executed by SKGC's extremely knowledgeable group of scientists and engineers at our production facility in Terrebonne, has further validated the effectiveness and robustness of our technology," said Daniel Solomita, Loop Founder and CEO. "Due to the large population centers and being the main hub for the polyester fiber supply chain for textiles, the Asian market represents a tremendous opportunity for growth. We are delighted to continue working closely with SKGC and to commercialize our technology in the Asian market."
"The successful completion of this technical due diligence validates our unique process and reaffirms the overall performance of our production facility," said Adel Essaddam, Vice President of Science and Innovation for Loop Industries. "Our technology enables us to make virgin-quality Loop PET resin and polyester fiber from low-value PET plastic, which is an important step towards our goal of reducing plastic waste and becoming a leader in PET plastic circularity."
