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Dow (DOW) & P&G Join Forces for High-Quality Recycled Polymer

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Dow Inc. (DOW - Free Report) and The Procter & Gamble Company have announced a joint development agreement (JDA) aimed at developing a new recycling technology. Their vision is to create an innovative process capable of efficiently converting hard-to-recycle plastic packaging into recycled polyethylene with high quality, coupled with a reduced greenhouse gas emissions footprint.

The collaboration will leverage the companies' proprietary technologies and expertise in the dissolution process. The focus will be on utilizing dissolution technology to recycle a wide array of plastic materials, with particular emphasis on polyethylene and targeting post-household plastic waste, including rigid, flexible and multi-layer packaging, which are traditionally difficult to recycle.

The primary objective of this technology is to produce high-quality post-consumer recycled (PCR) polymer with lower greenhouse gas emissions compared with conventional fossil-based polyethylene. P&G intends to incorporate this PCR polymer into its packaging, thereby establishing a pathway to circularity that maximizes resource efficiency and minimizes waste generation.

Dow Inc. Price and Consensus


Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote


The global partnership between Dow and P&G has already started and is anticipated to continue until commercialization. In addition to their patented technologies, both companies bring extensive experience in materials science, manufacturing capabilities and large-scale supply chain management. These aspects will be crucial in the development of this groundbreaking recycling technology for commercial manufacturing deployment.

Dow reaffirmed its dedication to converting plastic waste into circular solutions that meet both customer needs and sustainability objectives. Likewise, P&G emphasized the pivotal role of the partnership in driving forward its mission to expand industry solutions, steering toward a circular future where materials are repurposed and recycled instead of being disposed of as waste.

Dow and P&G have set ambitious goals to accelerate circularity. Dow aims to commercialize three million metric tons of circular and renewable solutions by 2030 as part of its sustainability targets. Meanwhile, P&G strives to ensure that 100% of its consumer packaging is designed for recyclability or reusability by the same year.

Dow’s shares have gained 5.3% in the past year against the industry's 7.1% decline in the same period.

Zacks Investment Research
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Zacks Rank & Key Picks

Dow currently carries a Zacks Rank #3 (Hold).

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