The agreement is expected to facilitate permitting, infrastructure coordination and administrative processes for Loop Industries' first large-scale commercial deployment.
The project is located in Gujarat’s Bharuch industrial corridor, giving access to established infrastructure, logistics and nearby sources of low-cost feedstock. The site has been secured with the capacity to support multiple facilities, enabling a phased expansion approach.
The initial facility is designed to support around 70,000 tonnes of production annually. The site can also accommodate a second facility of around 100,000 tonnes, allowing expansion to take place within the same location.
Loop said the new plant is intended to support a multi-phase build-out strategy in India.
The estimated capital cost for the initial facility is now expected to be around $165–170m, down from prior estimates of around $190m.
The company attributed the reduction to foreign exchange movements, 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."
