Shares of Loop Industries rose 2.4% on the announcement that the company has chosen BASF Industriepark Lausitz in Schwarzheide, Germany, as the location for its inaugural European Infinite Loop manufacturing facility.
The planned site will be Loop's second Infinite Loop facility worldwide and the first to be executed under its licensed-technology, capital-light model. The company said the project follows its December 2024 agreement with Reed - Societe Generale Group and is expected to reach operational status by 2030.
Loop described its proprietary depolymerization technology as capable of producing 70,000 metric tons per year of virgin-quality recycled PET and polyester fiber at the new facility. The company also stated that the process avoids up to 5 tons of CO2 emissions per ton of PET produced versus fossil-based alternatives.
With site selection complete, the project will transition into the engineering and permitting phase. Loop will book incremental revenue during this stage from engineering fees and license payments; the company has already received a 10 million upfront license payment.
Adel Essaddam, Loop's chief operating officer, commented on the decision, saying: "Selecting the BASF-powered Industriepark Lausitz is the defining next step for Loops expansion into Europe. This facility is a direct execution of our capital-light model, designed to efficiently scale our global footprint."
Loop emphasized that locating within BASF's Industriepark Lausitz offers access to established industrial infrastructure, while the partnership with Reed - Societe Generale Group supplies institutional capital support for the project. The company framed the site choice as central to commercializing its technology in Europe without committing to direct construction capital expenditures.
As the project advances, Loop's near-term activities will focus on engineering design, obtaining required permits and recording licensing-related revenue. The company set a clear target for the facility to be operational by 2030, while positioning the licensing arrangement as the mechanism to scale additional sites globally.
Investors reacted to the development with a modest uptick in Loop's share price on the announcement day, reflecting market attention to site selection, the expected production capacity, and the company's capital-light rollout approach.