Loop Industries reports Coca-Cola intends to terminate supply agreement

Coca-Cola Cross Enterprise Procurement Group (CEPG), which helps Coca-Cola bottlers source materials for packaging, on Oct. 29 sent Loop a notice that the company plans to terminate its 2018 agreement with Loop effective Dec. 14. The five-year agreement allowed bottler members of CEPG to buy RPET produced via Loop’s technology at an Indorama Ventures plant in South Carolina.

In 2018, Loop signed an agreement with Indorama Ventures, the world’s largest PET producer, to build a joint-venture depolymerization facility at Indorama’s Spartanburg, S.C. PET plant. That chemical recycling unit has not yet been built.

According to Loop’s Nov. 4 disclosure, CEPG said it was canceling the deal because Loop didn’t meet its first production milestone at the joint venture facility by July 2020, as required by the agreement. Loop said the project has been delayed by the COVID-19 pandemic and the continued U.S.-Canada border closures and quarantine requirements.

“CEPG indicated in the Notice that it is open and interested in exploring a new framework agreement with the Company for North America and/or Europe,” Loop wrote.

Read more at https://resource-recycling.com/plastics/2020/11/11/loop-industries-challenged-by-setbacks-and-legal-strife/

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