Ester JV Secures Multi-Year LOI with Global Sports Brand for 15,000 MT Resin Supply
Ester Industries' JV, ELITe, secured a multi-year LOI with a global sports brand for up to 15,000 MT of Loop™ PET Fiber Grade resin annually. This commitment, alongside Nike, covers substantial capacity for the upcoming 2028-operational facility, underscoring demand for recycled polyester.
The LOI represents a substantial commitment for a significant portion of the JV's future capacity, involving a leading global sports brand, which is expected to have a material positive impact on the company's future revenue and market position in sustainable materials.
The announcement details a significant commercial milestone for the company's joint venture, securing a multi-year LOI with a major global sports brand, indicating strong market demand and validating the company's strategic direction in sustainable manufacturing.
Ester Industries Limited announced that its 50:50 joint venture, Ester Loop Infinite Technologies Private Limited (ELITe), has secured a multi-year Letter of Intent (LOI) with a leading global sports and athletic brand for the supply of up to 15,000 metric tons of Loop™ PET Fiber Grade resin annually.
This prospective agreement is a significant milestone for ELITe, following an earlier announcement with Nike. The LOI signifies that a substantial portion of the upcoming Indian manufacturing facility's planned annual capacity is already committed ahead of its commercial start-up.
Mr. Arvind Singhania, Chairman of Ester Industries Limited, expressed pleasure, stating that this second commitment from a premier sports brand, alongside Nike, reaffirms the strong market demand for circular, textile-to-textile recycled polyester and validates ELITe's strategic position in sustainable manufacturing.
Mr. Daniel Solomita, Founder and CEO of Loop Industries, highlighted the agreement as strong validation of their technology's ability to deliver virgin-quality, sustainable resin at commercial scale, reinforcing the demand for infinitely recyclable PET.
The ELITe facility, expected to become operational in 2028, will utilize Loop's proprietary depolymerization technology to convert polyester textile waste into virgin-quality monomers, which will then be polymerized into polyester resin. Preliminary testing has yielded positive results.
The collaboration aims to scale circular textile manufacturing, reduce reliance on virgin fossil fuel-based polyester, and build low-carbon supply chains. Land acquisition for the Gujarat facility is expected to conclude within the next two to three months, and detailed engineering contracts have been awarded.
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