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Dow and Ambipar Expand Their Strategic Alliance To Drive the Transformation of the Plastic Materials Recycling Market in Brazil

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Dow and Ambipar have signed a Memorandum of Understanding to transform Brazil's plastic recycling market. The partnership aims to increase polyethylene recycling operations from 2,000 to 60,000 tons per year by 2030. The five-year phased approach includes building new Mechanical Recycling facilities to transform 80,000 tons of plastic waste into approximately 60,000 tons of post-consumer resin annually. The alliance will develop Brazil's first integrated center for polyethylene plastics circular economy, focusing on converting post-consumer waste into new products.

Dow e Ambipar hanno firmato un Memorandum d'Intesa per trasformare il mercato del riciclaggio della plastica in Brasile. L'obiettivo della partnership è incrementare le operazioni di riciclaggio del polietilene da 2.000 a 60.000 tonnellate all'anno entro il 2030. L'approccio sarà attuato in cinque fasi e prevede la costruzione di nuovi impianti di Riciclo Meccanico per trasformare 80.000 tonnellate di rifiuti di plastica in circa 60.000 tonnellate di resina post-consumo ogni anno. L'alleanza svilupperà il primo centro integrato per l'economia circolare delle plastiche in polietilene in Brasile, concentrandosi sulla conversione dei rifiuti post-consumo in nuovi prodotti.

Dow y Ambipar han firmado un Memorando de Entendimiento para transformar el mercado del reciclaje de plásticos en Brasil. La asociación tiene como objetivo aumentar las operaciones de reciclaje de polietileno de 2,000 a 60,000 toneladas por año para 2030. El enfoque se desarrollará en cinco fases, que incluyen la construcción de nuevas instalaciones de Reciclaje Mecánico para convertir 80,000 toneladas de desechos plásticos en aproximadamente 60,000 toneladas de resina posconsumo anualmente. La alianza desarrollará el primer centro integrado para la economía circular de plásticos de polietileno en Brasil, centrándose en convertir los desechos posconsumo en nuevos productos.

DowAmbipar가 브라질의 플라스틱 재활용 시장을 혁신하기 위한 양해각서를 체결했습니다. 협력의 목표는 2030년까지 폴리에틸렌 재활용 작업을 연간 2,000톤에서 60,000톤으로 늘리는 것입니다. 5년 간의 단계적 접근 방식에는 80,000톤의 플라스틱 폐기물을 연간 약 60,000톤의 소비자 이후 수지로 전환하기 위한 새로운 기계 재활용 시설 구축이 포함됩니다. 이 동맹은 소비자 이후 폐기물을 새로운 제품으로 전환하는 데 집중하여 브라질 최초의 폴리에틸렌 플라스틱 순환 경제 통합 센터를 개발할 것입니다.

Dow et Ambipar ont signé un protocole d'accord pour transformer le marché du recyclage des plastiques au Brésil. Le partenariat vise à augmenter les opérations de recyclage du polyéthylène de 2 000 à 60 000 tonnes par an d'ici 2030. L'approche par étapes sur cinq ans comprend la construction de nouvelles installations de recyclage mécanique pour transformer 80 000 tonnes de déchets plastiques en environ 60 000 tonnes de résine post-consommation chaque année. L'alliance développera le premier centre intégré pour l'économie circulaire des plastiques en polyéthylène au Brésil, en se concentrant sur la conversion des déchets post-consommation en nouveaux produits.

Dow und Ambipar haben ein Memorandum of Understanding unterzeichnet, um den brasilianischen Markt für Plastikrecycling zu transformieren. Das Ziel der Partnerschaft ist es, die Polyethylen-Recyclingoperationen von 2.000 auf 60.000 Tonnen pro Jahr bis 2030 zu erhöhen. Der fünfjährige, schrittweise Ansatz umfasst den Bau neuer mechanischer Recyclinganlagen zur Umwandlung von 80.000 Tonnen Plastikabfällen in jährlich etwa 60.000 Tonnen post-consumer Harz. Die Allianz wird Brasiliens erstes integriertes Zentrum für die Kreislaufwirtschaft von Polyethylen-Kunststoffen entwickeln, das sich darauf konzentriert, post-consumer Abfälle in neue Produkte zu verwandeln.

Positive
  • Partnership targets significant scale increase in recycling operations from 2,000 to 60,000 tons annually by 2030
  • Development of new Mechanical Recycling facilities with 80,000-ton waste processing capacity
  • Creation of first integrated circular economy center for polyethylene plastics in Brazil
Negative
  • Substantial capital investment required for new facilities and infrastructure
  • Long implementation timeline (5+ years) before reaching full operational capacity

Insights

This strategic partnership represents a significant transformation in Brazil's recycling infrastructure, with plans to scale operations from 2,000 to 60,000 tons annually by 2030. The development of new mechanical recycling facilities targeting 80,000 tons of plastic waste processing capacity demonstrates substantial market potential.

The initiative's scale and integrated approach, combining Dow's materials expertise with Ambipar's waste management capabilities, could create a blueprint for large-scale plastic recycling operations. Key value drivers include:

  • End-to-end mechanical recycling infrastructure development
  • Advanced technology implementation for post-consumer resin production
  • Comprehensive financial modeling covering waste logistics to product development
The partnership's focus on polyethylene recycling specifically targets a high-demand market segment, potentially positioning both companies to capture significant market share in Brazil's growing circular economy.

This collaboration could significantly impact both companies' market positions in Latin America's recycling sector. The planned 2900% increase in recycling capacity by 2030 indicates substantial growth potential in Brazil's circular economy market. The partnership leverages complementary strengths: Dow's materials science expertise and Ambipar's environmental solutions infrastructure.

The development of Brazil's first integrated circular economy center for polyethylene plastics represents a first-mover advantage in a rapidly evolving market. This positions both companies to benefit from increasing regulatory pressure and consumer demand for sustainable packaging solutions. The detailed financial modeling approach suggests a well-planned strategy for capturing market share while managing operational risks.

By 2030, Dow and Ambipar aspire to lead polyethylene recycling in Brazil, increasing operations from 2,000 tons to 60,000 tons per year

SÃO PAULO, BRAZIL / ACCESSWIRE / November 25, 2024 / Dow (NYSE:DOW), a leader in material science, and Ambipar, a Brazilian multinational and global leader in environmental solutions, today announced the signing of a Memorandum of Understanding (MoU) to explore innovative business opportunities that leverage the value of post-consumer plastic waste, transforming it into new products in the Latin American region. This partnership aims to create an effective platform for plastic recycling and boost the recycling and waste management system in Brazil. From the MoU, Dow and Ambipar intend to join their business intelligence with the goal of capturing post-consumer plastic materials, such as municipal solid waste, and transform them into products that incorporate plastic material to meet the growing demand for circular solutions. By 2030, Dow and Ambipar aspire to lead polyethylene recycling in Brazil, increasing operations from 2,000 tons per year to 60,000 tons per year. The partnership will facilitate business expansion, reinforcing the integration between the value chain to drive the circular economy of plastic.

The preliminary assessment involves a phased approach over the next five years to build new Mechanical Recycling facilities, employing the most efficient technology and transforming 80,000 tons of plastic waste into approximately 60,000 tons per year of post-consumer resin (PCR). This progression seeks long-term success, which will serve as a model for advanced recycling processes and technologies.

The MoU includes plans to develop a detailed financial model for end-to-end mechanical recycling, considering all aspects, from waste costs and logistics to the incorporation of recycled content into plastic materials. This will support the assessment of the recycled product development capacity, ensuring the use of the most effective technology to meet the growing market demand.

"This partnership marks a significant step towards a sustainable business model in Brazil, where post-consumer plastic waste is transformed into valuable resources, driving the circular economy in our region," says Leticia Jensen, vice president of Packaging and Specialty Plastics for Dow Latin America. "By leveraging our combined expertise, we intend to transform the recycling market in Brazil, enhancing the value of plastic waste and transforming it into high-quality products. Today, with Ambipar, we are setting new standards for the industry," concludes Jensen.

Transforming waste into opportunities
"Together, with this innovative partnership, we are setting a new standard in circular business models," says Adriano Pereira, head of Circular Economy and Transformation Industry at Ambipar. "Ambipar's pioneering approach to total waste management and its valorization, anchored in a strong commitment to sustainability, especially through Circular Engineering and Reverse Logistics, aligns with Dow's bold ambitions, demonstrating a strong engagement in providing circular solutions for packaging and product manufacturers, brand owners, and consumers," emphasizes Pereira.

This alliance is set to develop the first integrated center for the circular economy of polyethylene plastics in Brazil, focusing on transforming post-consumer waste into new products, setting a precedent for circular business models in the region and on a large scale.

"Our collaboration with Ambipar is a testament to our commitment to a sustainable business model and how we can work together as a materials ecosystem, partnering for the first time with a leader in waste management to drive polyethylene recycling in Brazil and create an established circular economy for plastic waste," shares Sabine Rossi, sustainability director for Packaging and Specialty Plastics at Dow Latin America.

"At Ambipar, we see this collaboration with Dow as a milestone in our journey towards circularity and waste valorization. It is much more than a commercial partnership; it is a synergy of values and a shared commitment to pioneering a more circular present and future for plastic. Our expertise in environmental management and circular solutions, combined with Dow's competence in material science, will unlock new possibilities in the recycling sector and beyond. We aim not only to transform waste into resources but also to reshape how society thinks about the circular economy and our environment," says Rafael Tello, vice president of Sustainability at Ambipar.

About Ambipar
Ambipar is a Brazilian multinational and global leader in environmental solutions, investing in and operating projects in decarbonization, circular economy, energy transition, and environmental regeneration. It is present in 40 countries and six continents and has more than 20,000 employees.

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.

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For further information, please contact:

Sarah Young
Dow
syoung3@dow.com

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SOURCE: DOW



View the original press release on accesswire.com

FAQ

What is Dow's recycling capacity target in Brazil by 2030?

Dow (NYSE:DOW) aims to increase its polyethylene recycling operations in Brazil from 2,000 tons to 60,000 tons per year by 2030 through its partnership with Ambipar.

How much plastic waste will Dow's new recycling facilities process?

The new Mechanical Recycling facilities will transform 80,000 tons of plastic waste into approximately 60,000 tons of post-consumer resin (PCR) per year.

What is the timeline for Dow's recycling facilities expansion in Brazil?

Dow plans a phased approach over the next five years to build new Mechanical Recycling facilities in Brazil.

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