Dow to acquire PE recycler Circulus

Dow has agreed to acquire Houston-based polyethylene recycler Circulus, a move the companies say will accelerate Dow’s 2030 Transform the Waste goal by incorporating Circulus’ film recycling expertise.

The transaction includes a facility in Ardmore, Oklahoma, and another in Arab, Alabama, and adds 50,000 metric tons per year of mechanical recycling capacity. Dow expects the transaction to close in the third quarter of this year, subject to customary regulatory approval.

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"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 goals,” Circulus Packaging and Specialty Plastics President Karen S. Carter says. "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."

According to Midland, Michigan-based Dow, its experience in materials science and high-performance resins combined with Circulus' mechanical film recycling capability will allow the company 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.

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"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," Circulus CEO Mike Dulin says. "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."

Dow says the agreement supports its efforts 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.