Dow recently agreed to buy Circulus, which recycles plastic waste into post-consumer resin.
This transaction includes two facilities—one in Ardmore, Oklahoma, and the other in Arab, Alabama—with a total capacity of 50,000 metric tons per year. Dow expects the transaction to close in the third quarter of 2024, subject to customary regulatory approval.
Terms of the deal were not disclosed.
Dow has said it intends to transform plastic waste and other forms of alternative feedstocks into 3 million metric tons of circular and renewable solutions annually by 2030. To do this, Dow is building industrial ecosystems to collect, reuse, or recycle waste and expand its portfolio to meet growing demand, the company says.
“This acquisition will allow Dow to combine our company’s industry leading materials science technology with Circulus’ film recycling expertise to accelerate progress toward our 2030 Transform the Waste goal,” said Karen S. Carter, Dow’s president of packaging and specialty plastics, in a news release.
“It will also expand how we participate in the industry, allowing us to generate value for our customers by directly producing more higher performing circular products that brands and consumers are demanding.”
The deal will allow Dow to enhance its offerings in applications, including collation shrink packaging, stretch film, liners, and select food packaging, in the industrial, consumer, and transportation markets.
“Circulus leverages the best technology available to advance the recycling of plastic packaging waste,” said Mike Dulin, Circulus CEO, in a statement.
“Our leadership team brings more than 65 years of combined experience in the recycling and plastics industries, resulting in high quality and sustainably produced resins, suitable for upcycled applications.”