Ester Industries’ JV Awards Engineering Contract to Toyo for India Project
Filing Summary
Ester Industries Limited, in collaboration with Loop Industries, has awarded a detailed engineering contract to Toyo Engineering India for the Infinite Loop India project. This contract marks the final engineering phase before construction begins. The facility, designed to produce 70,000 metric tonnes of PET resin annually, is expected to be completed by the end of 2027. The project has secured a multi-year offtake agreement with Nike as the anchor customer. Financially, the project benefits from USD 5 million in savings from land acquisition, with debt financing progressing on schedule.
Ester Industries Limited, in partnership with Loop Industries, has awarded a detailed engineering contract to Toyo Engineering India Private Limited for the Infinite Loop India project. This contract represents the final engineering milestone before the commencement of construction. The project is part of the joint venture, Ester Loop Infinite Technologies Private Limited (ELITe), which aims to establish a manufacturing facility in India.
The financial aspects of the project include a multi-year offtake agreement with Nike, which serves as the facility’s anchor customer. The project has realized savings of USD 5 million from land acquisition efforts, ensuring it remains on budget. Additionally, the debt financing process is proceeding as planned, with multiple term sheets received from international lenders, indicating strong market confidence in the project’s economic viability.
Operationally, the contract awarded to Toyo Engineering India covers the full scope of detailed design, procurement engineering, and technical documentation. The facility is strategically designed to address demand in the packaging and textile sectors, with an annual production capacity of 70,000 metric tonnes of PET resin. The project follows the successful completion of front-end engineering design by Tata Consulting Engineers.
The timeline for the Infinite Loop India project anticipates the completion of construction by the end of 2027. This timeline is maintained as the project progresses through its engineering and construction phases, with the detailed engineering phase now underway following the completion of the front-end engineering design.
The entities involved in this project include Ester Industries Limited and Loop Industries, who have formed the joint venture ELITe. Toyo Engineering India, a globally recognized EPC firm with extensive experience in executing large-scale industrial and petrochemical projects, has been contracted for the detailed engineering phase. The collaboration aims to deliver India’s first Infinite Loop facility.
The market context for this project is significant, as it addresses the growing demand for sustainable PET resin in the packaging and textile sectors. The facility is engineered to convert low-value textile and plastic waste into virgin-quality resin, supporting both textile-to-textile and food-contact packaging applications. This initiative aligns with the global movement towards a circular economy and sustainable practices.
Loop Industries is a technology company focused on accelerating the shift towards sustainable PET plastic and polyester fiber. The company owns patented technology that depolymerizes waste PET plastic and polyester fiber into base monomers, enabling the creation of virgin-quality PET resin. Loop Industries is committed to reducing plastic waste and promoting a circular economy.
Ester Industries Limited, established in 1985, is a leading manufacturer of polyester film, specialty polymers, and rPET in India. The company is committed to innovation and sustainability, with a strong research and development platform. Ester Industries has a global presence, supplying products to customers in over 50 countries and maintaining strategic partnerships to promote circular economy solutions.