Loop Industries, Inc. Announces Signed Letter of Intent with On AG to Secure Volumes from Planned Infinite Loop(TM) Manufacturing Facility in Ulsan, South Korea

Loop Industries, Inc. and On AG announced a Letter of Intent ("LOI") has been signed by On to secure volumes of 100% recycled virgin quality Loop™? PET resin from the upcoming Asian Infinite Loop™? manufacturing facility in Ulsan, South Korea, which Loop is planning with its strategic partner SK Geo Centric.

The Ulsan manufacturing facility is anticipated to break ground by end of this year. The signed LOI follows a two-year period of collaboration between Loop and On, throughout which time a technical due diligence was completed, validating Loop's technology and Loop™? PET resin was tested in On's product.

This partnership will provide On the ability to produce sustainable footwear and apparel using recycled materials and without the need for polyester fiber created from fossil fuels, which helps to reduce PET waste and the manufacturing footprint for On. Loop Industries is leading the way in sustainable and circular solutions for PET waste, allowing materials to be infinitely recycled without loss of quality or performance. Loop's breakthrough technology enables low value PET waste to be upcycled into 100% recycled virgin-quality Loop™?

PET resin which can be used in plastic products and food-grade packaging as well as polyester fiber applications. In addition to low value PET plastic waste, Loop also utilizes polyester fiber waste as feedstock in its process. By upcycling these materials, Loop's technology helps supply brands with sustainable, recycled polyester fabric and offers a closed loop solution to the textile industry.

This unique fiber to fiber recycling process is achieved through Loop's patented depolymerization technology. By leveraging Loop's technology and securing volume at the upcoming Ulsan, South Korea manufacturing facility, On is implementing a bold and sustainable footwear strategy in the industry, taking a giant step forward in circularity. The partnership between Loop Industries and On showcases how brands can transition to a sustainable, environmentally friendly solution where materials can be recycled infinitely.