Loop Industries Signs MoU With Gujarat's State Government In Support Of The Company's India Manufacturing Platform

Government Support Facilitates Commercial Deployment

The agreement is expected to facilitate permitting, infrastructure coordination, and administrative processes for the project, which represents Loop's first large-scale commercial deployment.

The project is situated in Gujarat's Bharuch industrial corridor, providing access to established infrastructure, logistics, and nearby sources of low-cost feedstock. The site has been secured with sufficient capacity to support multiple facilities, enabling a phased expansion strategy at the location.

The initial facility is designed for approximately 70,000 tonnes of annual production capacity, with the ability to expand through a second facility of approximately 100,000 tonnes at the same site.

Lower Estimated Capital Cost Improves Project Economics

Based on current engineering assumptions and foreign exchange rates, the estimated capital cost for the initial India facility is currently expected to be approximately US$165-170 million, compared to prior estimates of approximately US$190 million. The improvement primarily reflects favorable foreign exchange movements, ongoing procurement refinement, and land-related cost considerations.

"This agreement will assist us as we move from planning toward execution," said Daniel Solomita, Loop's Chief Executive Officer. "With government alignment and expansion capacity already secured, we are building a scalable commercial platform positioned to support growing global demand for virgin-quality recycled polyester. And the reduced capital cost will improve our return on investment."