India Facility On Budget and On Schedule
Infinite Loop India 70,000 MT facility is proceeding to construction, with detailed engineering underway (Toyo engaged Nov 1) and construction completion targeted for Q4 2027. Company states project is on budget and on schedule.
Anchor Supply Contract with Nike (Take-or-Pay)
Loop executed a multiyear supply contract with Nike for 'twist' (textile-to-textile polyester resin) with a fixed annual quantity, fixed pricing and a guaranteed take-or-pay element, providing a high-quality anchor offtake for the India facility.
European License and Site Progress
Loop sold a license to Reed Societe Generale to build one 70,000 MT plant in Europe; site selection narrowed from 20 to 3 with a lead site in Germany and anticipated finalization in late Jan/early Feb. Engineering/milestone payments expected to generate meaningful revenue over the next 3 years.
Engineering Revenue as Near-Term Cash Source
Engineering and milestone payments from the India joint venture and the Reed SocGen Europe project are expected to cover Loop's back-office expenses for several years and provide near-term revenue while plants are built.
Cash Operating Expense Reduction
Q3 cash operating expenses were $2.2M, a year-over-year reduction of $1.1M (approximately a 33% YoY decrease). Management expects further reductions as expenses transfer to the India JV and European project.
Debt Syndication Progress for India
Debt syndication for the India project is advancing with multiple term sheets from multilateral development banks, sovereign wealth funds and commercial banks; expected to close in the coming months. Target debt package for India is $130M (≈70% of project financing).
Lower CapEx via Modularization
Modular construction approach reduces CapEx by roughly 50% versus traditional stick-build, improving competitiveness in Europe and supporting lower per-pound capital costs (previous gross figure cited ~$0.61/lb).
Strong Feedstock and Scaling Potential
Company cites textile market scale (approx. 85M tons of PET/polyester annually, ~66% from textile side) and internal studies identifying >500,000 MT of textile waste available in India. Site capacity can expand to 170,000 MT total, enabling internal funding for future growth from project cash flows.