Loop Industries (LOOP), which uses depolymerization technology to break down plastic bottles, packaging, and carpets into virgin-quality plastic resins for use in new food-grade packaging, has significantly raised its demand forecast for the resins it produces despite slashing production at a key manufacturing facility.

Previously, Loop Industries has cited a 2018 IHS Polymer Market Report that estimated global annual market demand for PET plastic and polyester fiber would likely exceed $160 billion by 2022.

Like it did in in its latest annual report, Loop inserted new language in its latest quarterly filing that suggests market demand has grown significantly but does not cite a source for the new projection:

“The estimated global annual market demand for PET plastic and polyester fiber is approximately $180 billion.”

The increased opportunity appears inconsistent with Loop’s recent reduction in operations. In December 2022 Loop reduced its hours of operation at its Terrebonne facility in Quebec to:

“...reduce operating costs and preserve liquidity.”

Loop explained the reduction in hours by saying Terrebonne’s primary purpose was to demonstrate the company’s depolymerization technology was scalable and that the facility had achieved that objective.

But the company also acknowledged it relies on the plant to produce commercial quantities of virgin quality PET resin and polyester fiber for global brands and that it will continue to “fulfill existing commitments related to ongoing sales contracts from Terrebonne.”