Finance News - 10/29/24
(Leticia Jensen – Vice President of Packaging and Specialty Plastics for Dow Latin America and Tércio Borlenghi Junior – CEO of Ambipar)
Ambipar (AMBP3) and Dow, a leader in materials science, announced on Tuesday, the 29th, the signing of a Memorandum of Understanding (MoU) to explore innovative business opportunities that enhance 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 enhance the waste management system in Brazil,” stated Ambipar in a relevant fact.
The partnership seeks to establish an efficient recycling platform, combining Ambipar‘s plastic waste collection capabilities with Dow’s materials science and application development.
The companies intend to provide circular solutions for packaging manufacturers, brands, and consumers, strengthening the circular economy in Brazil and the region.
Under the MoU, the companies aim to combine their business intelligence to capture plastic materials from post-consumer sources, 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 to 60,000 tons per year.
The partnership will facilitate business expansion, reinforcing integration within the value chain to drive the circular economy of plastics. The preliminary assessment involves a phased approach over the next five years to build new Mechanical Recycling facilities employing the most efficient technology, transforming 80,000 tons of plastic waste into approximately 60,000 tons of post-consumer resin (PCR) per year.
The memorandum 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 capacity to develop the recycled product, ensuring the use of the most effective technology to meet the growing market demand, stated Ambipar.
“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 aim to transform the recycling market in Brazil, enhancing the value of plastic waste and turning it into high-quality products. Today, with Ambipar, we are setting new standards for the industry,” Jensen concludes.
Tercio Borlenghi Junior, CEO of Ambipar, highlights the positive impact of the partnership on the market and the environment. “We are establishing a new standard for circular businesses in Brazil, significantly reducing carbon emissions in the industry. With this alliance, in addition to leading plastic recycling, we will strengthen waste picker cooperatives and reduce improper disposal in landfills and oceans,” says Borlenghi.
According to Ambipar, this alliance is poised to develop the first integrated center for the circular economy of polyethylene plastics in Brazil.
