Dow, Ambipar partner to promote plastics recycling in South America

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11/26/2024 2:00:00 PM

Dow and Ambipar, a Brazilian multinational and global leader in environmental solutions, announced the signing of a Memorandum of Understanding (MoU) to explore innovative business opportunities that leverage the value of post-consumer plastic waste, transforming it into new products in the Latin American region. This partnership aims to create an effective platform for plastic recycling and boost the recycling and waste management system in Brazil. From the MoU, Dow and Ambipar intend to join their business intelligence with the goal of capturing post-consumer plastic materials, such as municipal solid waste, and transform them into products that incorporate plastic material to meet the growing demand for circular solutions. By 2030, Dow and Ambipar aspire to lead polyethylene 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 the circular economy of plastic.

The preliminary assessment involves a phased approach over the next five years to build new Mechanical Recycling facilities, employing the most efficient technology and transforming 80,000 tons of plastic waste into approximately 60,000 tons per year of post-consumer resin (PCR). This progression seeks long-term success, which will 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 waste costs and logistics to the incorporation of recycled content into plastic materials. 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 post-consumer 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 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," concludes Jensen.

Transforming waste into opportunities "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 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," emphasizes Pereira.

This alliance is set to develop the first integrated center for the circular economy of polyethylene plastics in Brazil, focusing on transforming post-consumer waste into new products, setting a precedent for circular business models in the region and on a large scale.

"Our collaboration with Ambipar is a testament to our commitment to a sustainable business model and how we can work together as a materials ecosystem, partnering for the first time with a leader in waste management to drive polyethylene recycling in Brazil and create an established circular economy for plastic waste," shares Sabine Rossi, sustainability director for Packaging and Specialty Plastics at Dow Latin America.

"At Ambipar, we see this collaboration with Dow as a milestone in our journey towards 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. 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," says Rafael Tello, vice president of Sustainability at Ambipar.

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Dow, Ambipar partner to promote plastics recycling in South America

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