Loop Industries terminates South Korean deal, India plan moves forward

Loop Industries, the operator of PET plastic and polyester fibre recycling technology, has announced the breakdown of its joint venture with South Korean Geo Centric (SKGC). The duo had initially established their relationship in early 2023 with the intention to construct and operate an Infinite Loop manufacturing facility in Ulsan, South Korea.

The decision to terminate the agreement reflected Loop’s strategy to “focus capital deployment in low-cost jurisdictions and prioritise a licensing and engineering services model in higher cost countries, as well as a strategic restructuring and re-orientation within the SK Group”, a regulatory filing revealed.

SKGC’s Jonghyuk Lee resigned from Loop’s board on January 13, 2025, due to the group’s wider reorganisation. The firm currently intends to continue maintaining its financial investment in Loop.

While the termination of the agreement in South Korea may be a setback for Loop, the company is continuing to make good progress on its facility in India, where, following a land study, it was confirmed that the Gujarat province was an optimal site for the facility.

Loop and its local partner, Ester, are now in the midst of completing due diligence with various parties for the acquisition of land in this region and have hired third parties to oversee construction and accounting procedures. Groundbreaking is expected to be in the second quarter of 2025, with construction completion anticipated for late 2026, followed by commercial operations commencing in 2027.

The India project intends to fulfill demand by circular fashion brands for T2T polyester, utilising waste polyester feedstocks in India to manufacture polyester resin made from 100 percent textile waste to supply the brands in question.