Chemicals, fibres and woollen yarns conglomerate Indorama Ventures has entered into a joint venture agreement with technology innovator Loop Industries to manufacture and commercialise sustainable polyester resin.

The partnership brings together Indorama's global manufacturing footprint and Loop's proprietary science and technology to become a reliable world leader in the 'circular' economy for 100% sustainable and recycled PET resin and polyester fibre.

The agreement launches a commercial solution for consumer packaged goods companies in response to the rapid growth in global plastic consumption for which there is a great need to responsibly collect and reuse these materials. Through this joint venture, Indorama Ventures and Loop Industries will be able to perpetually recycle the ever increasing amounts of PET plastic and polyester fibre proving the promise of and encouraging the shift to a circular economy.

The 50/50 joint venture will have an exclusive world-wide license to use Loop's technology to produce 100% sustainably produced PET resin and polyester fibre, with plans to begin commercial production in the first quarter of 2020. The production from the facility will be fully subscribed by leading global consumer brands.

"At Indorama Ventures, we continue to pursue the right opportunities to fill gaps that are intrinsic to our sustainable and profitable business by deploying resources in order to support the circular economy," says group CEO of Indorama Ventures, Aloke Lohia. "This joint venture with Loop Industries emphasizes our belief in recycling and is aimed at investing in new technologies that can steer further our aspiration of being a world-class chemical company making great products for society."

Daniel Solomita, founder and CEO of Loop Industries, adds: "This joint venture combines each of our companies' area of expertise so that we may both play a leading role in the global shift by business and consumers to the circular economy. This is a first strategic step in our global commercialisation plan and mission to accelerate the world's shift toward sustainable plastic and away from the traditional, take, make and dispose economy."