Ester Industries stock surged over 5 per cent after the company signed an agreement with Loop Industries Inc to form a joint venture to set up a polymer manufacturing facility in India.

Shares were up 5.34 per cent to trade at ₹126.30 as of 1.23 pm on Thursday.

According to the company’s statement, the joint venture is to build and operate an Infinite Loop India manufacturing facility which will produce product offering of lower carbon footprint recycled dimethyl terephthalate (rDMT), recycled mono-ethylene glycol (rMEG) and specialty polymers, using the Infinite Loop technology.

Arvind Singhania, Chairman and CEO of Ester Industries, said, “This partnership reinforces our dedication to advancing sustainable solutions in the polymer industry, and by leveraging Loop’s technology alongside our decades of polymer production experience, we will contribute to reducing the carbon footprint of our products, meeting the evolving needs of our customers.”

Loop’s Founder and CEO Daniel Solomita, said, “Our partnership with Ester reflects a strategic alignment built on our shared values of sustainability and innovation and combines both companies’ areas of expertise.”