Dow, a leader in material science, has partnered with Ambipar, a Brazilian multinational and global frontrunner in environmental solutions, to sign a Memorandum of Understanding (MoU). This agreement aims to explore innovative business opportunities that utilize the value of post-consumer plastic waste, converting it into new products across the Latin American region.

Source: Dow

The collaboration is designed to establish an effective platform for plastic recycling and enhance the recycling and waste management system in Brazil. Through the MoU, Dow and Ambipar plan to combine their business intelligence to capture post-consumer plastic materials, including municipal solid waste, and convert them into products that include recycled plastic, addressing the rising demand for circular solutions. By 2030, both companies aspire to lead polyethylene recycling in Brazil, scaling operations from 2,000 tons per year to 60,000 tons annually. This partnership will promote business growth and strengthen the integration of the value chain to advance the circular economy of plastics.

The initial assessment will adopt a phased approach over the next five years to establish new Mechanical Recycling facilities, utilizing the most efficient technologies to convert 80,000 tons of plastic waste into roughly 60,000 tons per year of post-consumer resin (PCR). This initiative aims for long-term success, serving as a model for advanced recycling processes and technologies.

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. 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 MoU also outlines plans to create a comprehensive financial model for end-to-end mechanical recycling, addressing all elements from waste costs and logistics to the integration of recycled content into plastic materials. This will aid in evaluating the capacity for developing recycled products while ensuring the deployment of the most effective technology to meet increasing market demands.

Transforming Waste into Opportunities

Together, with this innovative partnership, we are setting a new standard in circular business models. 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.

This partnership is poised to establish the first integrated center for the circular economy of polyethylene plastics in Brazil, with a focus on converting post-consumer waste into new products. This initiative sets a benchmark for circular business models in the region on a large scale.