Dow announces acquisition of Circulus to boost recycling capabilities
Dow (NYSE: DOW), a global leader in material science, has entered into a definitive agreement to acquire Circulus, a top innovator in plastic waste recycling. This strategic move includes the purchase of two recycling facilities located in Ardmore, Oklahoma, and Arab, Alabama, boasting a combined annual processing capacity of 50,000 metric tons. The acquisition is poised for completion in the third quarter of 2024, pending regulatory approvals.
This acquisition marks a significant step for Dow towards achieving its ambitious 2030 goal to ‘Transform the Waste’. By integrating Circulus’ specialized film recycling expertise with its own advanced materials science technology, Dow aims to accelerate its contributions to the circular economy. Karen S. Carter, president of Packaging & Specialty Plastics at Dow, stated, “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 goal. 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.”
The synergy between Dow’s high-performance resins and Circulus’ mechanical film recycling capabilities will enhance Dow’s product offerings. The collaboration will extend to various applications, including collation shrink packaging, stretch film, liners, and selected food packaging, broadening to industrial, consumer, and transportation markets.
Mike Dulin, CEO of Circulus, commented on the partnership, “The Circulus team is excited to move forward with Dow in advancing a circular economy. We leverage the best technology available to advance the recycling of plastic packaging waste.” He highlighted the team’s deep industry experience, which has been instrumental in producing high-quality, sustainably produced resins suitable for upcycled applications.
This transaction aligns with Dow’s earlier announced strategy to transform plastic waste and other alternative feedstocks into 3 million metric tons of circular and renewable solutions annually by 2030. By building industrial ecosystems to collect, reuse, or recycle waste, Dow is expanding its portfolio to cater to the rapidly growing demand for sustainable solutions.
Dow’s acquisition of Circulus is a clear indicator of the industry’s shift towards more sustainable practices. This partnership not only aims to improve recycling rates but also to produce higher-quality, sustainable materials that meet the evolving needs of brands and consumers alike.