In the premarket trading session, Loop Industries Inc. (LOOP) stock shares had surged by 2.73% to $13.55 in at last check. The session was previously closed for the LOOP stock at $13.19 gaining 4.93%. The LOOP stock volume traded 0.17 million shares. In the past year LOOP stock has jumped by 43.68% and in the past week moved up by 29.06%. In the past six months, the stock has gained 75.17%. Furthermore, Loop Industries Inc. is currently valued in the market at $512.30 million and has 42.39 million outstanding shares.
Loop industry aims to promote circular economy by converting waste plastic into PET
Loop Industries Inc. is a specialty chemicals company that specifically focuses on the production of plastics and polyester fibers. The plastics that company produces is known as polyethylene terepthalate (PET) plastics which are particularly sourced by waste plastic and the polyester fibers are used as base building blocks. The PET plastics are of virgin-quality that are used for food and beverage packing and containers as well as other consumer products. This makes food and beverage and consumer product packaging companies primary clients for the PET segment of LOOP stock. Furthermore, Loop industries Inc. also serves carpet, clothing and textile industries with the polyester fibers. Loop Industries is established in Terrebonne, Canada and is a major advocate for the circular economy movement for sustainable future.
SK Group has taken an interest in Loop Industries by initiating a strategic partnership
One of the biggest conglomerates of Asia, known as SK Group has a subsidiary named SK global chemical Co. ltd has announced the decision to acquire 10% of Loop Industries’ equity stake. This was done pursuant to a strategic partnership for promoting circular economy and through sustainable and circular plastics in the Asian market.
This partnership is done because both companies are driven towards sustainable PET production from de-polymerization of useless waste PET plastic and polyester fiber, including plastic containers and wrappers, rugs and materials of any shape, even sea plastics that have been debased by the sun and salt, to its base structure blocks (monomers). SK Group gives different car and packaging items and solutions that clients and markets require. The company is strategizing to invest massively in R&D efforts and global expansion to evolve the global chemical company’s output into a technology-based innovative drive towards sustainability. SK worldwide is aiming to accomplish its vision, ‘Green for Better Life’, by setting up a plastics based circular economy by working together with different accomplices and partners. SK is intending to extend the arrangement of eco-accommodating items and will persistently reuse past the measure of plastics that is created to acknowledge and use the maintainability endeavors that will profit the planet.
Details and potential of the Joint Venture between the two packaging companies
This makes the joint venture between both companies very ideal. Asia, a region with 60% of the world’s population is an integral market for plastics. The venture will allow SK to own 51% and 49% by Loop along with royalties from every facility that will utilize Loop’s patented and proprietary technology. The partnership will materialize on the first half on 2022 when the first facility is expected to be prepared along with four facilities in Asia in the year 2030.
The definitive agreement was pursued for strategic investment by SKGC in Loop for purchase of 4,714,813 shares at $12 per share price totaling at $56.5 million making 10% of the equity stake in Loop.
