Loop Industries announced that its European joint venture has chosen the BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its first European Infinite Loop™ facility. The plant will be built to a 70,000‑metric‑ton annual capacity and is expected to be operational by 2030, marking the second Infinite Loop facility worldwide and the first under the company’s licensed technology model.
The facility will house Loop’s proprietary depolymerization technology, which breaks down waste PET into virgin‑quality monomers at low temperature and pressure. The process is projected to avoid up to five tons of CO₂ emissions per ton of PET produced, delivering a significant environmental benefit compared with fossil‑based polyester manufacturing.
Loop’s strategy relies on a capital‑light licensing model. The company received a €10 million upfront license payment from its partner and expects to begin generating incremental engineering and license revenue during the development phase starting in 2026. The project is positioned to benefit from the European Commission’s 2025 pilot actions, providing regulatory support for advanced recycling initiatives.
The announcement was welcomed by investors after a recent Q3 FY2026 revenue miss of $80,000 versus an expected $875,000, underscoring the company’s focus on scaling its technology while managing short‑term financial headwinds.
COO Adel Essaddam said, “Selecting the BASF-powered Industriepark Lausitz is the defining next step for Loop’s expansion into Europe. This facility is a direct execution of our capital‑light model, designed to efficiently scale our global footprint.”
The move aligns with growing European demand for recycled polyester driven by regulatory requirements and brand sustainability commitments. By establishing a production plant in Germany, Loop can reduce logistics costs, tap into a mature market, and accelerate its global rollout strategy, positioning the company for future expansion across the continent and beyond.
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