Loop Industries, a company that operates recycling technology for PET plastic and polyester fibre, has announced the dissolution of its joint venture with South Korean Geo Centric (SKGC). In order to build and run an Infinite Loop manufacturing facility in Ulsan, South Korea, the two had first formed their partnership in early 2023.
In addition to a strategic restructuring and reorientation within the SK Group, the decision to terminate the agreement reflected Loop’s strategy to concentrate capital deployment in low-cost jurisdictions and prioritise a licensing and engineering services model in higher-cost countries, according to a regulatory filing.
On 13th January 2025, Jonghyuk Lee of SKGC resigned from Loop’s board as a result of the organization’s broader restructuring. For the time being, the company plans to keep investing money in Loop.
Loop is making good work on its facility in India, where a land analysis verified that the Gujarat province was the best location for the plant. However, the termination of the agreement in South Korea may be a blow for the company.
In order to acquire land in this area, Loop and its local partner, Ester, are currently working with a number of partners to complete due diligence. They have also engaged outside parties to supervise the accounting and building processes. Construction is planned to be completed by late 2026, with commercial operations starting in 2027. Groundbreaking is scheduled for the second quarter of 2025.
By using waste polyester feedstocks in India to produce polyester resin made entirely of textile waste, the India initiative aims to meet the demand for T2T polyester from circular fashion firms.
