Investor Reed is to pump €60m (£51.5m) into a joint venture with hi-tech plastic recycler Loop Industries.
The companies signed a memorandum of understanding of their intention to form a long-term partnership.
The deal will see Reed spend €10m in return for exclusive rights to co-invest with Loop in projects designed to commercialise its patented technology in Europe.
The investor would then offer the joint venture two €10m loans a year apart, before committing a further €30m to cover initial project development costs.
Nasdaq-listed Loop owns technology that depolymerises low-value waste PET and polyester fibre, including plastic bottles, packaging, carpets, textiles and even ocean plastics.
The resultant monomers are filtered, purified and polymerised to create virgin-quality PET resin suitable for use in food-grade packaging and polyester fibre, according to the firm.
Loop founder and chief executive Daniel Solomita said: “We believe that this partnership, which combines Reed’s extensive financing relationships and experience in the development of major capital projects with Loop’s innovative technology, will be invaluable in the next stage of Loop’s strategic development.”
He added that the deal would “maximise our opportunity to penetrate the European market as brands adapt to increasingly stringent regulatory requirements for plastic recycling”.
