Sustainable plastic firm Loop Industries has agreed to supply 100% recycled and sustainable Loop PET plastic (Loop PET) to the Coca-Cola system’s Cross Enterprise Procurement Group (CEPG).
The multi-year supply framework between Loop Industries and CEPG will allow authorized Coca-Cola Bottlers to enter into supply deals to secure Loop branded PET plastic resin.
The recycled and sustainable plastic will be supplied from Loop’s joint venture (JV) facility with Indorama Ventures in the US.
CEPG bottler member Coca-Cola European Partners chief supply chain officer Ron Lewis said: “Like all responsible companies, we need to be selective in choosing our packaging materials so that we continue to eliminate waste and work to reduce the environmental impact.
“Investments like this one with Loop Industries support our goal to ensure that at least 50% of the material we use for our PET bottles comes from recycled plastic, and will help us divert more materials from landfills and build a stronger circular plastic economy.”
In September this year, Indorama Ventures has established a JV with Loop to manufacture and commercialize sustainable polyester resin to meet the increasing global demand from beverage and consumer packaged goods companies.
The 50/50 JV will have an exclusive world-wide license to use Loop’s technology to produce sustainably produced PET resin and polyester fiber. The plans are underway to start commercial production in the first quarter of 2020.
Loop is currently engaged in the commercialization of its advanced depolymerization technology, which will enable to decrease global plastic waste and supports major global brands to achieve their sustainability goals.
The technology is said to decouple plastic from fossil fuels by depolymerizing waste polyester plastic to its base building blocks called monomers.
Later, the monomers will be repolymerized to form virgin-quality polyester plastic, which is in line with FDA standards for use in food-grade packaging.
Loop Industries founder and CEO Daniel Solomita said: “We are very proud to become a supplier of Loop branded PET resin to the members of the Coca-Cola system’s Cross Enterprise Procurement Group.”
In October this year, PepsiCo agreed to incorporate Loop Industries’ PET plastic into its product packaging by early 2020.