Loop Industries Announces Signed Letter of Intent With On AG to Secure Volumes From Planned Infinite Loop(TM) Manufacturing Facility in Ulsan, South Korea
MONTREAL, QC / ACCESSWIRE / May 15, 2023 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company" or "Loop"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber and On AG ("On"), a sportswear brand and a subsidiary of On Holding AG, today announced a Letter of Intent ("LOI") has been signed by On to secure volumes of 100% recycled virgin quality Loop™ PET resin from the upcoming Asian Infinite Loop™ manufacturing facility in Ulsan, South Korea, which Loop is planning with its strategic partner SK Geo Centric. The Ulsan manufacturing facility is anticipated to break ground by end of this year.
The signed LOI follows a two-year period of collaboration between Loop and On, throughout which time a technical due diligence was completed, validating Loop's technology and Loop™ PET resin was tested in On's product. This partnership will provide On the ability to produce sustainable footwear and apparel using recycled materials and without the need for polyester fiber created from fossil fuels, which helps to reduce PET waste and the manufacturing footprint for On.
"Circularity is a main pillar in On's sustainability process. We are happy to see that Loop is bringing their technology to commercial scale," said Ilmarin Heitz, Head of Innovation at On. "This marks another huge step towards closing the fiber-to-fiber loop within the textile industry."
"Loop's technology enables fiber to fiber recycling, providing brands like On with a closed-loop solution to their supply chain," said Giovanni Catino, Vice President of Sales and Business Development. "We anticipate that 60% of the feedstock utilized at our planned commercial manufacturing facility in Ulsan to come from polyester fibers which presents a significant opportunity for circularity for this material."
Loop Industries is leading the way in sustainable and circular solutions for PET waste, allowing materials to be infinitely recycled without loss of quality or performance. Loop's breakthrough technology enables low value PET waste to be upcycled into 100% recycled virgin-quality Loop™ PET resin which can be used in plastic products and food-grade packaging as well as polyester fiber applications. In addition to low value PET plastic waste, Loop also utilizes polyester fiber waste as feedstock in its process. By upcycling these materials, Loop's technology helps supply brands with sustainable, recycled polyester fabric and offers a closed loop solution to the textile industry. This unique fiber to fiber recycling process is achieved through Loop's patented depolymerization technology.
By leveraging Loop's technology and securing volume at the upcoming Ulsan, South Korea manufacturing facility, On is implementing a bold and sustainable footwear strategy in the industry, taking a giant step forward in circularity. The partnership between Loop Industries and On showcases how brands can transition to a sustainable, environmentally friendly solution where materials can be recycled infinitely.
On was born in the Swiss Alps with one goal: to revolutionize the sensation of running by empowering all to run on clouds. Thirteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel, and accessories for high-performance running, outdoor, and all-day activities. Fueled by customer-recommendation, On's award-winning CloudTec® innovation, purposeful design and groundbreaking strides in sportswear's circular economy have attracted a fast-growing global fanbase - inspiring humans to explore, discover and dream on. On is present in more than 60 countries globally and engages with a digital community on www.on.com.
About Loop Industries
Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, successfully closing the plastic loop. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future.
Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP."
For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries
This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "should," "could," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or "continue" the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its strategies, ability to improve and expand its capabilities, competition, expected activities and expenditures as Loop pursues its business plan, the adequacy of its available cash resources, regulatory compliance, plans for future growth and future operations, the size of Loop's addressable market, market trends, and the effectiveness of Loop's internal control over financial reporting. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with among other things: (i) commercialization of our technology and products, (ii) our status of relationship with partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) engineering, contracting, and building our manufacturing facilities, (vii) our ability to scale, manufacture, and sell our products in order to generate revenues, (viii) our proposed business model and our ability to execute thereon, (ix) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (x) disease epidemics and other health-related concerns and crises, which could result in reduced access to capital markets, supply chain disruptions and scrutiny, embargoing of goods produced in affected areas, government-imposed mandatory business closures and any resulting furloughs of our employees, government employment subsidy programs, travel restrictions or the like to prevent the spread of disease, or market or other changes that could result in non-cash impairments of our intangible assets, and property, plant and equipment, (xi) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xii) the outcome of any SEC investigations or class action litigation filed against us, (xiii) our ability to hire and/or retain qualified employees and consultants, (xiv) other events or circumstances over which we have little or no control, and (xv) other factors discussed in Loop's subsequent filings with the Securities and Exchange Commission ("SEC"). More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
For More Information:
Kevin C. O'Dowd, Vice-President Communications & Investor Relations
Loop Industries, Inc.
Andrea Kostiuk, VP Marketing & Communications
Loop Industries, Inc.
+1 (450) 951-8555
SOURCE: Loop Industries, Inc.
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