Loop Industries, Taro Plast execute offtake agreement for DMT

Montreal-based Loop Industries Inc. and Taro Plast S.p.A., Soragna, Italy, have executed an offtake agreement under which Loop will supply Taro Plast with its 100 percent recycled Loop dimethyl terephthalate (DMT).

Under the agreement, Loop will supply Taro Plast with Loop DMT from its Infinite Loop India facility, which is scheduled to come online in early 2028. The manufacturing facility also is set to produce 140 million tons of polyethylene terephthalate (PET) resin annually for the packaging and textile industries. The DMT produced at the facility will be used for automotive and specialty polymer applications.

Taro Plast says it has conducted independent testing confirming the purity and performance of Loop DMT, and the company also has become the first to integrate Loop DMT into its product portfolio.

“This is a very important moment for the industry looking for reliable solutions to reduce greenhouse gas emissions by replacing fossil feedstock in the manufacturing of plastic goods,” Taro Plast Managing Director Andrea Squeri says. “This partnership with Loop Industries is a significant milestone in our journey towards a circular economy that boost our development and introduction of new solutions within the portfolio of our TPC Pibiflex and Riteflex adhering to the industry’s high-quality standards while ensuring sustainability right from the start of the value chain.”

The agreement will expand Loop’s product offering beyond fiber-grade and bottle-grade PET resin.

“We’re excited to partner with Taro Plast, a recognized leader in innovation and quality within the specialty polymers industry,” Loop Industries Chief Revenue Officer Giovanni Catino says. “With Taro Plast’s expertise and commitment to excellence, combined with Loop’s virgin-quality, 100 percent recycled DMT, this partnership sets a new benchmark for integrating recycled content and reducing the carbon footprint of specialty polymers without compromising on performance or quality. The production and sale of DMT will complement the ongoing focus of the India JV on providing polymers for global apparel and CPG brands.”