Loop Industries: Significant Reduction in Capacity of PET Recycling Project in India

Canadian recycling technology provider Loop Industries has revised its plans to build a PET recycling plant in India. Instead of the originally planned 70,000 tonnes, the first plant is now expected to produce only 45,000 tonnes of recycled PET (rPET) and polyester fibres per year. This represents a reduction in planned production capacity of approximately 36 percent (see also plasticker-news dated September 26, 2025).

As Loop Industries announced on 15 October 2026, the downsizing is primarily intended to reduce the project's capital requirements and facilitate its implementation. With the lower capacity, the company expects reduced investment costs and lower equity and debt financing requirements. Toyo Engineering India is currently preparing an updated cost estimate. Specific figures for the revised investment volume are not yet available.

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According to the current schedule, construction of the PET recycling plant is expected to be completed by the end of 2028, with commissioning and production ramp-up planned for 2029.

The project will be operated by a joint venture in which Loop Industries and Indian polyester manufacturer Ester Industries each hold a 50 percent stake. The PET recycling plant will be located in the Indian state of Gujarat, where PET waste and end-of-life polyester textiles will be processed using Loop Industries' chemical recycling technology to produce feedstocks for the manufacture of rPET and polyester fibres.

Despite the reduced capacity, Loop Industries remains committed to its longer-term expansion plans. Following the successful commissioning of the first PET recycling plant, a second plant is planned at the same site. The company envisages an annual production capacity of at least 100,000 tonnes for this second plant.

However, financing the project remains a challenge. A special committee of the board of directors, established in September 2026, is reviewing various financing options, particularly to secure Loop Industries' equity contribution to the Indian joint venture. As of 31 August 2026, the company reported total cash and available financing resources of US$1.9 million.

More information: www.loopindustries.com, www.esterindustries.com

Loop Industries + Ester Industries, India

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