The Thailand-based leading petrochemical company Indorama Ventures has reportedly announced that it has formed a joint venture (JV) with Canadian sustainable polyester technology and plastic resin making firm, Loop Industries. Reports claim, the two companies aim to produce and commercialize sustainable PET resin and polyester fibers.
Reportedly, the 50:50 JV would be using Loop’s proprietary technology to manufacture a 100% sustainable polyester fiber and PET resin. The JV further plans to commence with the product’s commercial production by the first quarter of 2020, cite sources.
According to a press release by Indorama Ventures, the new JV aligns with Indorama’s objective of investing in circular economies globally and encouraging the use of PET – a multifaceted, recyclable and competitive plastic that can be turned into a sustainable packaging material. Reportedly, PET has a smaller carbon footprint than other packaging materials across its lifecycle.
Reliable reports cite, the two companies would be capable of perpetually recycling PET plastic as well as polyester fibers as the JV would allow Indorama to deploy advanced technology of Loop.
Aloke Lohia, the CEO of Indorama, stated that the firm strives to pursue right opportunities that would bridge intrinsic gaps in a profitable and sustainable business by launching optimal resources that support a sustainable economy. Lohia further added that the new JV with Loop Industries highlights Indorama’s belief in recycling and aims to invest in new pioneering technologies that would help the company achieve its goal of becoming a world-class chemical firm that manufactures great products for the society.
Daniel Solomita, the CEO of Loop Industries, reportedly stated that the JV marks the firm’s first steps to speed up the world’s transition towards sustainable plastic and away from the conventional, environment-damaging take, make, and discard economy.
According to reports, financial details related to the JV agreement are yet to be released.