Loop Industries Inc. (NASDAQ: LOOP) announced that its joint venture ELITe has signed a memorandum of understanding with the Government of Gujarat to support development of the company's manufacturing platform in India.

The agreement covers permitting, infrastructure coordination, and administrative processes for Loop's first large-scale commercial deployment. The project is located in Gujarat's Bharuch industrial corridor and includes an initial facility designed for approximately 70,000 tonnes of annual production capacity.

The company has secured land with sufficient capacity for multiple facilities, enabling expansion through a second facility of approximately 100,000 tonnes at the same site. Loop's estimated capital cost for the initial India facility is approximately $165-170 million, down from prior estimates of approximately $190 million.

"This agreement will assist us as we move from planning toward execution," said Daniel Solomita, Loop's chief executive officer. "With government alignment and expansion capacity already secured, we are building a scalable commercial platform positioned to support growing global demand for virgin-quality recycled polyester."

The cost reduction reflects favorable foreign exchange movements, procurement refinement, and land-related cost considerations, according to the company's press release. Loop Industries develops technology for recycling PET plastic and polyester waste into monomers for food-grade packaging and textiles.