RCS - Loop Industries - Loop Industries Confirm Due Diligence at Facility

Loop IndustriesAnnouncement

28/03/2023 15:00

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RNS Number : 5049U  Loop Industries  28 March 2023

Loop Industries and SK Geo Centric Confirm the Successful Completion of a
Technical Due Diligence of Loop's Technology at Its Production Facility in
Quebec, Canada

·      Marks the Next Phase in the Commercialization of Infinite Loop™
Facilities Across Asia

·      Breaking Ground of First Facility in Ulsan, South Korea
Anticipated Later in 2023

MONTREAL, QC / ACCESSWIRE / March 28, 2023 / Loop Industries, Inc.
(NASDAQ:LOOP) ("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 SK Geo
Centric ("SKGC"), subsidiary of South Korean group SK, today announced the
successful completion of a technical due diligence conducted by SKGC and the
validation of Loop's technology. The technical due diligence marks the next
phase in Loop and SKGC's long-standing partnership to commercialize Loop's
technology through Infinite Loop™ manufacturing facilities in the Asian
market.

SKGC, which acquired a 10% equity stake in Loop in August 2021, executed a
comprehensive due diligence to validate Loop's technology and its production
facility in Terrebonne, Quebec. The scope of the technical due diligence
included the depolymerization of low value PET waste into its base monomers of
DMT and MEG, the purification of the monomers, as well as the polymerization
into virgin-quality Loop™ PET resin and polyester fiber. Key parameters of
Loop's technology that were validated were the production yields, operational
stability, quality of the outputting monomers and overall performance of the
production facility. The technical due diligence validated that the PET resin
and polyester fiber produced using Loop's technology is of virgin-quality. The
technical due diligence report, signed by both parties, confirms Loop's
innovative technology.

SKGC and Loop are committed to commercialize the Infinite Loop technology in
Asia and the partners are planning several jointly built large-scale
manufacturing facilities. Loop and SKGC are also working together with SK
ecoengineering "SKEE", a subsidiary of the SK Group who brings considerable
experience and proficiency as an EPC contractor, on the engineering services
for their Asian manufacturing facilities. The first Asian manufacturing
facility in Ulsan, South Korea, is anticipated to break ground in 2023 and the
evaluation of the second Asian facility has already begun. The next step in
the partnership is to sign the definitive joint venture agreement which is
currently being finalized.

"The technical due diligence, executed by SKGC's extremely knowledgeable group
of scientists and engineers at our production facility in Terrebonne, has
further validated the effectiveness and robustness of our technology. This
complete due diligence is a critical milestone to our partnership with SKGC
and the commercialization of Infinite Loop™ manufacturing plants across
Asia. Due to the large population centers and being the main hub for the
polyester fiber supply chain for textiles, the Asian market represents a
tremendous opportunity for growth." said Loop Founder and CEO Daniel Solomita.
"We are delighted to continue working closely with SKGC and to commercialize
our technology in the Asian market."

"The successful completion of this technical due diligence validates our
unique process and reaffirms the overall performance of our production
facility," said Adel Essaddam, Vice President of Science and Innovation for
Loop Industries. "Our technology enables us to make virgin-quality Loop™ PET
resin and polyester fiber from low-value PET plastic, which is an important
step towards our goal of reducing plastic waste and becoming a leader in PET
plastic circularity."

"SK Geo Centric has closely studied Loop's technology that depolymerizes PET
waste. With our combined efforts, we aim to utilize and increase the use of a
more diversified selection of PET feedstock which will drive circularity for
this material", added Taejin Kim, Leader of Environmental R&D center of SK
innovation.

"We are confident that Loop Industries' cutting-edge technology of PET
recycling will be a winning tech in the industry. We are currently focused on
the planning of our first manufacturing facility in Ulsan, South Korea, where
we will implement Loop's technology", said Hyeong-taek Ham, Chief Technology
Officer of SK Geo Centric.

Loop

Investor Relations:

Kevin C. O'Dowd, Vice-President Communications & Investor Relations

Loop Industries, Inc.

+1 617-755-4602
kodowd@loopindustries.com (mailto:kodowd@loopindustries.com)

Media Inquiries:

Andrea Kostiuk, VP Marketing & Communications

Loop Industries, Inc.

+1 (450) 951-8555
akostiuk@loopindustries.com (mailto:akostiuk@loopindustries.com)

About SK Geo Centric

In 1972, SK geo centric laid the foundation for the development of the
petrochemical industry by operating the first naphtha-cracking facility in
Korea. SK geo centric provides various automotive & packaging products and
petrochemical solutions that customers and markets require. Furthermore, SK
geo centric is growing into a technology-based global chemical company through
continuous R&D efforts. SK geo centric will achieve its vision, 'Green for
Better Life', by establishing a plastics based circular economy by
collaborating with various partners and stakeholders. SK Geo Centric aims to
be the largest urban oil field in the world, with announcing a plan of
construction of its Advanced Recycle Cluster(ARC) in Ulsan, South Korea, by
late 2025. ARC will be built on a 215,000㎡ (about the size of 22 soccer
fields). Once the construction is completed, it will be able to process
recycling around 250,000 tons of waste plastics each year.

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
(https://pr.report/HSiq3ehu) . Follow Loop on Twitter: @loopindustries
(https://pr.report/Vvmf9cqr) , Instagram: loopindustries
(https://pr.report/V6ae-fg0) , Facebook: Loop Industries
(https://pr.report/8L-c6byq)  and LinkedIn: Loop Industries
(https://pr.report/6n-DPKWq)

Forward-Looking Statements

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 Loop's technology
and products, (ii) Loop's status of relationship with partners, (iii)
development and protection of Loop's intellectual property and products, (iv)
industry competition, (v) Loop's need for and ability to obtain additional
funding relative to its current and future financial commitments, (vi)
engineering, contracting and building Loop's planned manufacturing facilities,
(vii) Loop's ability to scale, manufacture and sell its products in order to
generate revenues, (viii) Loop's proposed business model and its ability to
execute thereon, (ix) adverse effects on Loop's business and operations as a
result of increased regulatory, media or financial reporting scrutiny and
practices, rumors or otherwise, (x) disease epidemics and health related
concerns, such as the current outbreak of additional variants of coronavirus
(COVID-19), which could result in (and, in the case of the COVID-19 outbreak,
has resulted in some of the following) reduced access to capital markets,
supply chain disruptions and scrutiny or embargoing of goods produced in
affected areas, government-imposed mandatory business closures and resulting
furloughs of Loop's employees, government employment subsidy programs, travel
restrictions or the like to prevent the spread of disease, and market or other
changes that could result in noncash impairments of our intangible assets, and
property, plant and equipment, (xi) the outcome of the ongoing SEC
investigation or the class action litigation filed against Loop, (xii) Loop's
ability to hire and/or retain qualified employees and consultants and (xiii)
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 (https://pr.report/68N4hHKA) . Loop assumes no
obligation to publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.

SOURCE: Loop Industries, Inc.

 

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