Loop Industries, SK Global Chemical announce partnership

Loop Industries Inc. plans to create a strategic partnership with South Korea’s SK Global Chemical Co. Ltd. to speed commercial use of its sustainable PET technology in Asia.

Montreal-based Loop has a patented method to make virgin-quality PET from waste PET and polyester fiber. The method uses low heat and no added pressure. The companies are planning a joint venture to build manufacturing facilities throughout Asia to employ Loop’s technology. Under the terms of the agreement, SK Global will own 51 percent of the joint venture, and Loop will own the remaining 49 percent.

SK Global will also make an equity investment of $56.5 million in Loop to take a 10 percent stake in the company, which Loop will use to fund construction of its Infinite Loop manufacturing facility in Bécancour, Quebec.