Marvin Wolff

Marvin Wolff inquired about the planned capacity of the German plant, the status of customer discussions for that facility, and the specific financial details of the India project, including the size of the debt package and Loop's equity contribution.

Answer

Daniel Solomita, CEO of Loop Industries, confirmed that the German plant would have the same 70,000-ton capacity as the Indian facility. He explained that the European plant would primarily serve packaging customers, with some textile recycling, leveraging modularization to achieve competitive CapEx and pricing. Solomita stated that the debt package for the India project is $130 million, representing 70% of the project cost, and Loop's equity component is approximately $28 million.

Marvin Wolff inquired about the planned capacity of the German plant, the status of customer discussions for that facility, and the specific financial details regarding the debt package and Loop Industries' equity contribution for the India project.

Answer

Daniel Solomita, CEO of Loop Industries, confirmed that the German plant will have the same 70,000-ton capacity as the Indian facility. He noted that while the European plant would primarily serve the packaging side, some textile recycling is possible, and existing Loop customers (European packaging and textile brands) are expected to support it. Solomita highlighted that modular construction significantly reduces CapEx, making pricing competitive. For the India project, he stated the debt package is $130 million, representing 70% of the project cost, and Loop's equity contribution is approximately $28 million.

Requested details about the two potential sites in India, including permitting, utilities, and power needs. Also asked about long-lead equipment, the value of the contributed polymerization unit, and whether customers would be named in press releases.

Answer

The Indian sites are in pre-zoned industrial parks where permits are acquired with the land, allowing for immediate construction. Loop will build its own utilities, which are included in the CapEx. The plant requires less than 5 megawatts of power, with steam generated from biomass. There is no long-lead equipment to order, as the polymerization reactors are already in stock and valued at approximately $5M for the equity contribution. Loop anticipates announcing customer names in future press releases.

Marvin Wolff of Paradigm Capital sought more details on the Indian project sites, including permitting timelines and utility availability, as well as the status of long-lead equipment, the value of the contributed polymerization unit, and whether customer names could be publicly announced.

Answer

CEO Daniel Solomita explained the proposed sites are in pre-zoned industrial parks, meaning permits are acquired with the land, enabling a quick start to construction. He stated the facility requires less than 5 MW of power, will use biomass (rice husks) for steam, and has no long-lead equipment issues. He valued the contributed polymerization unit at approximately $5 million and expressed confidence that customer names could be announced upon signing agreements.

The analyst requested confirmation of the final CapEx for the India plant following the Tata engineering study, its planned annual output, and the timeline to achieve full production capacity.

Answer

The all-in CapEx for the India plant is confirmed at $176 million, which includes a new continuous polymerization section. The plant's annual output will be 70,000 tons, and it is expected to reach full ramp-up in early 2028 after starting operations in 2027.

Marvin Wolff from Paradigm Capital asked for a long-term outlook, questioning how many plants using Loop's technology would be operational by October 2027, the status of the French plant, and the potential for European tariffs on Chinese PET.

Answer

CEO Daniel Solomita projected that by October 2027, the Indian facility would be running, with a second facility also potentially operational by that time. He explained that the French plant's progress is stalled due to low European PET prices, which make the high CapEx challenging. While uncertain about future tariffs on Chinese PET, he emphasized that Loop's low-cost manufacturing strategy in India is designed to be competitive regardless of PET price fluctuations or trade policies.