Loop Industries' Indian Joint Venture Secures Land in Gujarat for New Facility

Loop Industries' joint venture in India has acquired a strategic site in Gujarat for its Infinite Loop manufacturing facility. The site has direct access to textile waste for feedstock and renewable clean energy, industrial infrastructure, and sufficient land for a 70,000 metric ton facility and further 100,000 metric ton capacity expansion. The total cost of the land is $10.5M, a $5M reduction from the initial estimate. The facility will be powered by 80% clean, renewable electricity and renewable biofuel, significantly reducing its environmental footprint.

Loop Industries (NASDAQ: LOOP) has announced that its India joint venture has secured a strategic 93-acre site in Gujarat for its Infinite Loop™ manufacturing facility. The acquisition, which comes at a cost of $10.5 million, represents a significant reduction from the initial capital cost estimate of $176 million [1].

The site, located near Surat, India's synthetic textile capital, offers several advantages. Its proximity to abundant polyester textile waste feedstock provides a crucial supply chain advantage for Loop's recycling technology. Additionally, the site's integration within a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) will expedite the permitting process and leverage the region's skilled labor force in the petrochemical industry [1].

The Infinite Loop™ manufacturing facility will have an initial capacity of 70,000 metric tons per year, with potential for expansion to an additional 100,000 metric tons. The plant will be powered by 80% clean, renewable electricity and renewable biofuel, significantly reducing its environmental footprint. The resulting PET resin produced at the plant will have up to 80% lower carbon emissions compared to traditional virgin PET [1].

The site's proximity to a deep-water seaport also creates export logistics advantages for international distribution. The $1.7 million initial deposit and expected completion of permitting by end-2025 establish a clear timeline for the project's progression to the construction phase [1].

"This land acquisition in Gujarat is a foundational step that positions the Infinite Loop™ India project for groundbreaking and construction," said Adel Essaddam, COO at Loop Industries. "This site checks every box from an infrastructure, logistics, and feedstock availability standpoint. It sets the stage for deploying our technology efficiently and competitively, while providing the footprint needed for a planned 100,000 metric ton further capacity expansion once the initial facility is operational" [1].

References:
[1] https://www.stocktitan.net/news/LOOP/loop-industries-india-joint-venture-reaches-agreement-to-acquire-gapbr541l1ai.html