Loop, Ester industries partner for recycled plastic plant in India

Loop Industries and Ester Industries are joining forces to build a $165 million recycling plant in India. The facility will use Loop's technology to convert polyester waste into its chemical building blocks, DMT and MEG, for use in specialty polymers.

This collaboration targets a growing market. The DMT and MEG specialty chemicals market is valued at $28 billion and is expected to continue growing. Notably, there's a current shortage of low-carbon DMT and MEG, which Loop's technology can address.

The plant aims to produce 70,000 tons of recycled DMT and 23,000 tons of recycled MEG annually. Importantly, this process boasts a 70 per cent reduction in carbon emissions compared to traditional methods.

The partnership leverages existing strengths. Loop has experience producing recycled PET for major brands, and Ester Industries manufactures specialty polymers. Additionally, India offers an abundant supply of textile waste to fuel the recycling process.

Construction is expected to be completed by the end of 2026, with operations starting in early 2027. This project is anticipated to deliver strong economic returns without requiring a significant sustainability premium on the products.

Arvind Singhania, CEO of Ester Industries, said this partnership advances sustainable solutions in the polymer industry. Loop's technology, combined with their experience, will reduce the carbon footprint of their products.

Loop's CEO Daniel Solomita added that the specialty chemicals market offers a unique chance to expand their technology's reach. Strong demand exists for their recycled materials due to limited existing options.