M&As: Dow to acquire PE recycler Circulus; Altana/UB FIGG invest in flame retardants producer Nordtreat
US firm Dow has announced it has signed an agreement to acquire Circulus, a recycler of plastic waste into post-consumer resin (PCR). This transaction includes two facilities, one in Ardmore, Oklahoma, and another in Arab, Alabama, with a total capacity of 50,000 tonnes/year. Dow expects the transaction to close in the third quarter of 2024, subject to customary regulatory approval.
Dow's expertise in materials science and high-performance resins combined with Circulus' mechanical film recycling capability will allow Dow to enhance its offerings in applications, such as collation shrink packaging, stretch film, liners and select food packaging, to a wider range of applications in the industrial, consumer, and transportation markets.
"The Circulus team is excited to move forward with Dow in advancing a circular economy. Circulus leverages the best technology available to advance the recycling of plastic packaging waste," said Mike Dulin, CEO, Circulus. "Our leadership team brings more than 65 years of combined experience in the recycling and plastics industries, resulting in high quality and sustainably produced resins, suitable for upcycled applications."
This transaction supports Dow's efforts, announced earlier, to transform plastic waste and other forms of alternative feedstocks into 3 million tonnes of circular and renewable solutions annually by 2030. To do this, Dow is building industrial ecosystems to collect, reuse or recycle waste and expand its portfolio to meet rapidly growing demand.
In other news, Finnish sustainability fund UB Forest Industry Green Growth Fund (UB FIGG) and German specialty chemicals group Altana are investing in Finnish technology company Nordtreat. The company specialises in the development and production of environmentally friendly flame retardants. Nordtreat relies on bio-based raw materials, and its products comply with the latest fire protection regulations.
The company’s Norflam products are already being used successfully to protect more than 2,000 buildings and structures around the world.
Nordtreat was established in 2015. Since then, the company has expanded its product and service portfolio for bio-based, environmentally friendly flame retardants. In addition to the investment by UB FIGG and Altana AG, the company has also agreed with Altana’s BYK division to develop bio-based flame retardant additives.
“With its certified fire retardants and flame retardant systems, Nordtreat has already developed environmentally friendly products and successfully launched them on the market. At the same time, we are seeing a growing demand for bio-based solutions for flame retardant additives. Building on this, we are pooling our innovative strength to jointly develop novel, bio-based additives for fire protection,” says BYK Division President Dr. Jörg Hinnerwisch.
Sakari Saarela, a partner at UB FIGG comments: "We are very happy to support Nordtreat’s growth, serving especially the wood-based construction industry in Europe and globally. We value our partnership with Altana in the investment due to their expertise and resources in the specialty chemicals sector, and we are looking forward to the cooperation.”
The parties have agreed not to disclose the investment amount.
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