Rapid development of recycled plastics won't change demand outlook for traditional polymers, says Dow CEO

The chief executive of U.
S.
chemical giant Dow said that increased demand for recycled plastics will not change the overall demand outlook for polymers
.

“Demand for PE will continue to grow,” Jim Fitterling said on an investor conference call hosted by Bernstein.
“That could mean less new virgin production capacity, but having to mix more
recycled plastic with virgin .
”

“In order to achieve the desired properties, very few products have a final product made entirely of 100% post-consumer recycled (PCR) material
.
The general practice is to mix PCR with some virgin material,
” he added
.

Dow's goal is to increase the amount of PCR in its products while designing packaging that is fully recyclable
.

In February this year, the company signed a Memorandum of Understanding (MoU) with India-based Lucro Plastecycle to develop and launch PE films using PCR plastics in India
.

Dow is also advancing the chemical recycling of plastics through partnerships with Fuenix and Mura Technology, which will provide feedstock for Dow's crackers
.

The company currently appears to be taking an asset-light approach to plastic recycling
.

"Instead of putting all of our incremental capital into plastic recycling, we're leveraging our capital through partnerships with Circulate Capital, Closed Loop Recycling and others to really drive investment in recycling," Fitterling said
.

“Because there is a demand for more recycled content from downstream brands and we are seeing this in our own plastic chain as well
.
Sales of products containing recycled materials have almost doubled compared to last year, so we believe this This trend will continue
.
”

Dow's CEO doesn't see a significant positive impact from recycled plastics, but he believes producers can be cost-competitive and take advantage of a fast-growing market
.

“Right now, making recycled material is a little more expensive than making virgin material, but I think that will change over time
.
We have to take into account policies around carbon taxes or emissions trading schemes and changes in carbon prices
.

"Whether it's carbon dioxide reduction or recycled plastic, we see it as an opportunity for innovation and growth, and we think it's the right thing to do for the world
.
"