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Loop Industries breaks down waste PET packaging and polyester textiles into their chemical building blocks, purifies them, and makes recycled resin and fiber with virgin-material quality. Its Infinite Loop technology targets apparel and consumer packaged goods companies that need recycled materials for textiles and packaging, including food packaging.
The business is still at the pre-commercialization stage, with limited revenue. Engineering work for its India joint venture supplies most of its current revenue; resin sales are small. It has also received an upfront technology-license payment from Reed Circular Economy, an affiliate of Reed Societe Generale Group, for a planned European facility. Its small Terrebonne facility in Québec supplies some customers but mainly supports research, training and marketing; the technology has not yet been tested at large commercial scale.
Loop plans to earn royalties and a share of operating profits from factories developed with partners. At the planned India plant with Ester, it would also be the exclusive seller of the products. Nike has agreed to buy Twist, Loop’s polyester resin made from textile waste, once that plant operates, subject to the agreement’s terms. The European arrangement offers another route: licensing the technology without Loop owning most of the factory.
These plans depend on Ester and Reed advancing their projects and on additional financing for construction and Loop’s ongoing operations. The India plant remains in early development, before construction. License payments depend on project progress and contractual conditions; factories also need permits, and food-packaging approvals require continuing regulatory compliance.
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Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Loop’s results hinge on financing and scaling its planned plants with Ester and Reed Societe Generale Group, while Nike’s contracted purchases depend on the India plant becoming operational.
Aduro Clean Technologies Inc. and Loop face the same challenge: funding and winning commercial partners for technologies that turn waste plastics into reusable materials, with plant operators paying to use their technology, though they process different plastics. Watch Aduro’s progress bringing its technology into partners’ existing plants and securing royalty-bearing licenses as a sign of commercial uptake for this business model.
EIA Crude Oil Stocks Change (Oct/16)
The EIA’s weekly stocks report tracks how much crude oil and gasoline are held in storage; by influencing oil prices, it can change whether packaging and apparel customers find Loop Industries’ recycled PET resin more attractive than virgin PET and how much they buy.
Read the stock level for what it may imply about oil prices: larger-than-expected stocks could make virgin PET cheaper and weaken customer interest in Loop resin, while smaller stocks could lift oil prices and make Loop resin more competitive. The effect on sales depends on customers’ purchasing and planned facilities reaching operation.
Loop Industries, Inc. earningsThis company
Loop Industries, Inc. has yet to establish recurring commercial revenue, and this report will show whether resin or licensing income is joining India project engineering fees as cash use changes.
Read revenue sources alongside operating cash flow: look for resin sales or licensing income beyond engineering fees, and whether cash use slows. Broader revenue sources with lower cash use would show commercialization is beginning to extend beyond project services and funding pressure is easing. If engineering fees remain the main revenue and cash use stays high, Loop Industries, Inc. still lacks commercial revenue at scale and needs outside financing to advance its projects.
