Dow advances its mechanical recycling offering by agreeing to acquire Circulus, a North American polyethylene recycler

Rhea-AI Summary

Dow (NYSE: DOW) has announced the acquisition of Circulus, a North American polyethylene recycler, to bolster its mechanical recycling capabilities. This acquisition includes two facilities in Ardmore, Oklahoma, and Arab, Alabama, which collectively add an annual recycling capacity of 50,000 metric tons. The deal is expected to close in Q3 2024, pending regulatory approval. This move aligns with Dow's 2030 Transform the Waste goal, enabling the production of higher-performing circular products for various markets. Circulus' expertise in film recycling complements Dow's materials science capabilities, enhancing Dow's offerings in industrial, consumer, and transportation applications.

Positive

• Acquisition adds 50,000 metric tons of recycled materials annually.
• Supports Dow's 2030 Transform the Waste goal.
• Expands Dow's participation in the recycling industry.
• Enhances product offerings in multiple markets.
• Combines advanced materials science with recycling expertise.

Negative

• Transaction is subject to regulatory approval.
• Potential integration challenges with Circulus' facilities.

• Acquisition of Circulus will add capacity of 50,000 metric tons of recycled materials annually to advance progress towards Dow's 2030 Transform the Waste goal

MIDLAND, Mich., June 20, 2024 /PRNewswire/ -- Today, Dow (NYSE: DOW) announced it has signed an agreement to acquire Circulus, a leading recycler of plastic waste into post-consumer resin (PCR). This transaction includes two facilities, one in Ardmore, Oklahoma, and another 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.

"This acquisition will allow Dow to combine our Company's industry leading materials science technology with Circulus' film recycling expertise to accelerate progress towards our 2030 Transform the Waste goal," said Karen S. Carter, president, Packaging & Specialty Plastics. "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."

Dow's expertise in materials science and high-performance resins combined with Circulus' mechanical film recycling capability will allow Dow to enhance its offerings in applications, such as collation shrink packaging, stretch film, liners and select food packaging, to a wider range of applications in the industrial, consumer, and transportation markets.

"The Circulus team is excited to move forward with Dow in advancing a circular economy. Circulus leverages the best technology available to advance the recycling of plastic packaging waste," said Mike Dulin, CEO, Circulus. "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."

This transaction supports Dow's efforts, announced earlier, 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 rapidly growing demand.

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

For further information, please contact:

Mary Fournier   
Dow     
+1 989-636-7475   
mkfournier@dow.com 

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SOURCE The Dow Chemical Company

FAQ

What is the impact of Dow's acquisition of Circulus?

Dow's acquisition of Circulus adds 50,000 metric tons of annual recycling capacity, supporting its 2030 Transform the Waste goal.

When is the Dow-Circulus acquisition expected to close?

The Dow-Circulus acquisition is expected to close in the third quarter of 2024, pending regulatory approval.

What are the locations of Circulus' facilities included in the Dow acquisition?

The Circulus facilities included in the acquisition are located in Ardmore, Oklahoma, and Arab, Alabama.

How does the Circulus acquisition benefit Dow's product offerings?

The acquisition enhances Dow's product offerings by combining advanced materials science with Circulus' film recycling expertise, enabling higher-performing circular products.

How does the Circulus acquisition align with Dow's environmental goals?

The acquisition supports Dow's goal to transform plastic waste into 3 million metric tons of circular and renewable solutions annually by 2030.