Loop Industries Inc (LOOP)

History and Background

Loop Industries Inc. was founded in 2015 and is focused on developing proprietary technology to depolymerize waste polyethylene terephthalate (PET) plastic and polyester fiber, including low-value and no-value waste, back to its base building blocks (monomers). These monomers are then repolymerized into virgin-quality Loopu2122 branded PET plastic for use in food-grade packaging and other applications.

Core Business Areas

• PET Depolymerization Technology: Develops and licenses its proprietary technology for the depolymerization of PET plastics and polyester fibers.
• Loopu2122 Branded PET: Production and sale of virgin-quality PET plastic made from recycled materials, marketed under the Loopu2122 brand.
• Partnerships: Collaborates with consumer brands and manufacturers to integrate Loopu2122 PET into their products and packaging.

Leadership and Structure

Daniel Solomita serves as Founder & CEO. The organizational structure includes teams focused on technology development, operations, sales and marketing, and finance.

Key Offerings

• Loopu2122 PET Resin: Virgin-quality PET plastic made from 100% recycled content using Loop's depolymerization technology. Market share is difficult to determine due to the nascent stage of advanced recycling; however, they compete with traditional PET manufacturers and other recycling technologies. Competitors include Eastman Chemical (EMN) and Carbios.
• Technology Licensing: Licensing of Loop's depolymerization technology to manufacturers and recyclers. Revenue depends on the number and scale of licensing agreements, which are not publically available. Competitors include chemical companies that offer alternative recycling technologies.

Industry Overview

The industry is focused on developing sustainable packaging solutions, driven by increasing environmental awareness and regulatory pressure to reduce plastic waste. There is growing demand for recycled content in packaging.

Positioning

Loop Industries is positioned as a technology provider for advanced recycling of PET, differentiating itself through its ability to handle a wider range of PET waste streams, including colored and contaminated materials, and produce virgin-quality PET. The company is focused on licensing its technology to integrate into partners existing infrastructure. Key to the company's success will be in building strong strategic relationships and executing on its technology.

Total Addressable Market (TAM)

The TAM for recycled PET is estimated to be in the tens of billions of dollars globally. Loop is positioned to capture a portion of this market through its technology licensing and PET production.

Key Competitors

• EMN
• PKI
• CPG

Competitive Landscape

Loop Industries differentiates itself through its proprietary depolymerization technology. However, it faces competition from larger, more established chemical companies with significant resources and existing infrastructure. Loop has a much smaller market share.

Historical Growth: Historical growth has been limited by the company's focus on technology development and its relative lack of operational production scale.

Future Projections: Future growth is dependent on the successful commercialization of its technology, securing additional licensing agreements, and expansion of production capacity.

Recent Initiatives: Recent initiatives include securing partnerships with major consumer brands and expanding its plant construction efforts. The partnerships are in various stages and there are delays and cost overruns in the building of its facilities.

Loop Industries is a technology company with an innovative approach to PET recycling; it's technology is not yet commercialized. The company's partnerships and potential for growth are promising, but they are reliant on deploying its technology and executing on its plans. Investors should monitor the company's cash burn and technological milestones. Loop is still considered a high-risk, high-reward play.

Data Sources:

• SEC Filings
• Company Website
• Industry Reports

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and based on available information.