Dow, Ambipar working to drive plastic recycling in Brazil

Dow Chemical Co. and Brazilian multinational environmental solutions company Ambipar recently signed a memorandum of understanding (MoU) to explore business opportunities leveraging the value of postconsumer plastic scrap and turning it into new products in the Latin American region. The companies say their partnership aims to create an effective platform for plastic recycling and boost the recycling and waste management system in Brazil.

Per the MoU, Midland, Michigan-based Dow and Ambipar intend to join forces with the goal of capturing postconsumer plastics such as municipal solid waste and turn it into products that incorporate plastic material to meet the growing demand for circular solutions. By 2030, the companies say they hope to lead polyethylene (PE) 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 a circular economy for plastic.

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The companies say their preliminary assessment involves a phased approach over the next five years to build new mechanical recycling facilities, employing efficient technology and transforming 80,000 tons of plastic scrap into approximately 60,000 tons per year of postconsumer resin (PCR). The partners add that this progression seeks long-term success, which can 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 scrap costs and logistics to the incorporation of recycled content into plastic materials. The companies say 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 postconsumer 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 in 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.”

The partnership is set to develop the first integrated center for the circular economy of PE in Brazil, focused on transforming postconsumer material into new products.

“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 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.”

Based in Brazil, Ambipar invests in and operates projects in decarbonization, circular economy, energy transition and environmental regeneration. The company is present in 40 countries and six continents and has more than 20,000 employees.

Ambipar Vice President of Sustainability Rafael Tello says the company’s work with Dow can be seen as a milestone in the journey toward 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,” Tello adds. “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.”