Dow partners with Delian Group to develop sustainable solutions for circularity in automotive market products

Rhea-AI Summary

Dow (NYSE: DOW) and Guangdong Delian Group have signed a memorandum of understanding at the 7th China International Import Expo to expand the use of post-consumer recycled (PCR) resins in the automotive market. Delian Group has successfully implemented Dow's REVOLOOP™ Recycled Plastics Resins in auto care product packaging, marking its first commercial application in this sector. The partnership aims to support the industry's transition toward circularity and sustainability, reducing reliance on virgin resins and decreasing packaging's carbon footprint. This collaboration is part of Dow's 'Transform the Waste' initiative, focusing on developing sustainable solutions and promoting a circular economy.

Positive

• First commercial application of REVOLOOP™ Recycled Plastics Resins in the auto care market
• Strategic expansion into sustainable automotive packaging solutions
• Reduction in carbon footprint through decreased virgin resin usage

Negative

• None.

Insights

Environmental Technology Analyst

This partnership demonstrates Dow's strategic expansion in sustainable packaging solutions, particularly in the high-potential automotive care sector. The implementation of REVOLOOP™ PCR resins represents a significant technological advancement in reducing virgin plastic usage while maintaining product quality. The collaboration's focus on circularity aligns with increasing regulatory pressures and consumer demands for sustainable packaging solutions.

The market opportunity is substantial - the global automotive care products market is projected to grow significantly, with sustainable packaging becoming a key differentiator. However, the immediate financial impact on Dow's $32.9B market cap will likely be minimal in the short term. The long-term value lies in establishing early market position and technology leadership in circular economy solutions.

SHANGHAI, Nov. 12, 2024 /PRNewswire/ -- Dow (NYSE: DOW), a leading global materials science company, and Guangdong Delian Group Co., Ltd. (Delian Group) signed a memorandum of understanding (MoU) at the 7th China International Import Expo. The two companies will collaborate to expand the application of post-consumer recycled (PCR) resins in the automotive market, supporting the industry's shift toward circularity.

Delian Group has successfully incorporated Dow's REVOLOOP™ Recycled Plastics Resins into the packaging of auto care products. This innovative solution not only reduces packaging's carbon footprint by greatly decreasing reliance on virgin resins, but also marks the first commercial application of Dow's REVOLOOP™ Recycled Plastics Resins in the auto care market.

Bambang Candra, Asia Pacific commercial vice president of Dow Packaging and Specialty Plastics said, "As global climate change intensifies and resources become scarcer, the sustainability of the automotive market is increasingly critical. Embracing sustainable materials can mitigate these issues, offering consumers more environmentally responsible options while promoting a circular economy in automotive services. Dow is dedicated to developing innovative solutions for a circular economy and enhancing our REVOLOOP™ Recycled Plastics Resins portfolio to meet customers' sustainability needs. We are honored to collaborate with Delian Group to advance the commercial application of REVOLOOP™ in the automotive sector."

"We have been adhering to the business philosophy of energy conservation, emission reduction and a low-carbon environment'," said Xu Tuanhua, Chairman of Delian Group. "The strategic partnership with Dow marks significant progress toward a circular economy, further distinguishing Delian Group from competitors in the automotive market and helping us meet the growing global demand for sustainable products."

The signing of this memorandum of understanding marks a pivotal step in Dow's commitment to "Transform the Waste" initiative. This collaboration aims not only to enhance the packaging application of post-consumer recycled resins in the automotive market but also to drive innovation that will redefine waste as a valuable resource. By working together, Dow and Delian Group will focus on developing sustainable solutions that contribute to a circular economy, where materials are reused and repurposed, minimizing environmental impact and supporting long-term resource sustainability.

About Dow Packaging and Specialty Plastics

Packaging and Specialty Plastics (P&SP), a business unit of Dow (NYSE: DOW), combines core strengths of R&D, worldwide reach, broad product lines and industry expertise to deliver high performing technologies for end use markets in food packaging, personal hygiene, infrastructure, consumer goods and transportation. P&SP is one of the world's largest producers of polyethylene resins, functional polymers, and adhesives, and enabled by Pack Studios, is a leading innovator and collaborator across the value chain on sustainable application development and circular economy life-cycle design for plastics. www.dowpackaging.com

About MobilityScience™

Drawing on over a century of transportation experience and expertise in application development, Dow MobilityScience™ pioneers innovative solutions that drive global progress. With a diverse portfolio of materials science solutions and world-class technical capabilities, Dow is dedicated to shaping the future of mobility. From addressing challenges like decarbonization to enhancing EV performance, Dow remains at the forefront of advancing mobility solutions. For further details, please visit the MobilityScience™ website.

About Dow

Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

About Delian Group

Delian Group was founded in 1984 with the headquarters in Foshan, Guangdong province. The major businesses include automobile fine chemicals, automobile sales service and automobile repair and maintenance. Delian Group was listed in Shenzhen stock exchange on March 27, 2012 with the stock name of Delian Group and stock code of 002666.

Delian Group possesses 19 subsidiaries, including 4 large scale production bases that respectively located in Changchun, Shanghai, Foshan and Chengdu, making Delian become a large-scale group company that integrates production, research and development, sales, trading and logistics as a whole.

In April, 2015 Shanghai Delian AutoCare Network Development Co., Ltd. was established, which marked Delian Group officially entered the Chinese auto aftermarket!

Delian Group implements the policy of "quality first, service foremost", takes "energy conservation and emission reduction as well as low carbon environment" as management idea, and realizes efficient integration of technological development, distribution channel and management system, aiming to be a national leading brand in automobile fine chemicals and to offer high-quality service to the whole auto industry chain.

View original content to download multimedia:https://www.prnewswire.com/news-releases/dow-partners-with-delian-group-to-develop-sustainable-solutions-for-circularity-in-automotive-market-products-302296408.html

SOURCE Dow Packaging and Specialty Plastics

FAQ

What is Dow's new partnership with Delian Group for automotive products?

Dow (NYSE: DOW) has partnered with Delian Group to develop sustainable solutions using post-consumer recycled resins in automotive market products, specifically implementing REVOLOOP™ Recycled Plastics Resins in auto care product packaging.

How will Dow's REVOLOOP™ Recycled Plastics Resins benefit the automotive sector?

REVOLOOP™ Recycled Plastics Resins will reduce the carbon footprint of automotive packaging by decreasing reliance on virgin resins, supporting the industry's transition toward circularity and sustainability.

What is the main objective of Dow's partnership with Delian Group in 2024?

The main objective is to expand the application of post-consumer recycled resins in the automotive market, promoting circular economy practices and developing sustainable packaging solutions.