The purchase, conducted through Loop Industries’ joint venture (JV) in the country, is a significant step in the company’s expansion in the Indian market.
The land, acquired for $10.5m, reflects a $5m reduction from the initial capital cost estimate of $176m provided in the front-end engineering design (FEED) package by Tata Consulting Engineers.
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An initial deposit of $1.7m has been made to secure the 93-acre site.
Located near Surat in India, an area known for its synthetic textile industry, the site offers the Loop Industries JV access to a substantial supply of polyester textile waste feedstock.
This aligns with Loop Industries’ focus on sustainability and supports the company’s mission to promote a circular economy for polyester materials.
With aims to reduce environmental footprint, the planned facility is designed to operate on 80% clean, renewable electricity and biofuel.
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By GlobalDataThe polyethylene terephthalate (PET) resin manufactured at the plant is anticipated to have carbon emissions up to 80% lower than those of standard virgin PET derived from petroleum.
This site, located within a designated Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), can accommodate an initial production capacity of 70,000 metric tonnes (mt) annually, with potential expansion to add another 100,000mt per year.
The PCPIR status aids in streamlining the permitting process, which is anticipated to conclude by the end of 2025. It also offers the advantage of a skilled workforce from the local petrochemical sector, stated the company.
Moreover, the facility’s proximity to a major deep-water seaport is expected to facilitate efficient export logistics for the resin produced.
Loop Industries COO Adel Essaddam said: “The land acquisition in Gujarat is a foundational step that positions the Infinite Loop India project for groundbreaking construction. 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 tonne further capacity expansion once the initial facility is operational.”
Headquartered in Terrebonne, Quebec, Canada, Loop Industries focuses on depolymerising waste PET plastics and polyester fibres into their monomers dimethyl terephthalate (DMT) and Monoethylene Glycol (MEG). These can then be repurposed into new PET plastics and fibres.
The company recently introduced Twist, a brand of circular polyester resin intended for use in fashion, sportswear, and home textiles.
