Dow, Avangard to bring post-consumer grades of PE to North America

Materials giant Dow Inc. and recycling leader Avangard Innovative LP are teaming up to offer recycled-content resins to North American plastics processors.

Dow of Midland, Mich., and Avangard of Houston announced the partnership Jan. 15. Avangard will supply Dow with post-consumer (PCR) grades of low and linear low density polyethylene sourced from plastic film. Dow then will combine this material with its own virgin grades of LDPE and LLDPE.

The amount of recycled content in the new materials will vary based on application, Dow Sustainability Director Julie Zaniewski said in a Jan. 14 interview with Plastics News.

"Our intention is to offer PCR-based materials to help our customers meet their sustainability goals," she added. These recycled-content PE grades then can be used in liners, shrink wrap, protective packaging and similar applications.

The exclusive agreement between the two firms will provide Dow's first PCR-based product offering in North America. The firm already offers similar materials in Europe.

Avangard will supply Dow with PCR materials from its own plant in Houston. Avangard is in the process of opening a new plant in the Houston area, with one line set to launch in April and a second in June, Chief Operating Officer Jon Stephens told Plastics News.

When the new plant is fully operational, Avangard's current Houston site will be decommissioned, he added. The new plant will have annual capacity of more than 100 million pounds. Avangard also will open a recycled materials site in Mexico later this year and plans to add an additional location in Nevada.

The program with Dow "leverages both companies' expertise in the vertical chain," Stephens said. "Our expertise is in recycling and now we can combine that with Dow's knowledge of material development."

Zaniewski added that the partnership is "a direct proof point" of Dow's circular market strategy. "Our customers are looking for alternative options to meet their commitments on sustainability," she said. "There have been a lot of commitments made, but we hadn't seen a lot of PCR-based initiatives."

Dow's post-consumer-based PE materials will be commercially available to North American customers later this year.

In a Jan. 15 news release, Dow officials said that delivering circular economy solutions "is a key component" of Dow's sustainability strategy.

"Any plastic lost to the environment as waste is unacceptable," said Nestor de Mattos, Dow's North America commercial vice president for Packaging and Specialty Plastics. "That's why we're collaborating with [Avangard] to advance new solutions that maintain the value of used plastics."

Avangard CEO Rick Perez added in the release that his firm "has built film collection and sortation experience over 35 years, uniquely positioning us to deliver PCR materials that will allow Dow to develop circular products for its customers."

Dow ranks as one of the world's largest makers of polyethylene, as well as many other specialty plastics and chemicals. The firm employs 37,000 and has annual sales of around $50 billion.

Plastics News ranks Avangard as North America's 11th largest plastics recycler, based on annual reprocessed volume.