Loop Industries Delays India Plant to 2028, Cuts Capex by $25M
LOOP•Loop Industries delayed its Infinite Loop India facility operations to 2028 and reduced capex estimates from $190M to $165–170M through currency benefits and procurement savings. It secured CAD2.9M in non-repayable funding, cut fixed overhead costs and faces liquidity only through year-end as debt financing requires 50% long-term offtake contracts.
1. India Facility Delay and Capex Reduction
Loop Industries now expects its 200,000-ton Infinite Loop India facility to begin operations in 2028 following permitting coordination under the Gujarat government memorandum of understanding. The estimated capital cost has been lowered from roughly $190 million to $165–170 million through favorable foreign exchange rates, land acquisition savings and procurement optimizations.
2. Funding, Expense Cuts and Liquidity
The company secured up to CAD2.9 million in non-repayable funding from the National Research Council of Canada and implemented targeted cost reductions in insurance and other fixed overheads. Management projects sufficient cash runway into year-end, supplemented by engineering contracts for European feasibility studies covering back-office expenses.
3. Debt Financing and Offtake Agreements
Loop has received multiple term sheets from international banks aiming for a 70% debt, 30% equity financing structure, currently in technical due diligence expected by mid-July. Final debt drawdown on the India plant requires long-term offtake contracts for at least 50% of capacity, with existing agreements including a three-year Nike contract featuring a 40% take-or-pay clause.
