India: Circular Economy Dow, Lucro Sign MOU to Launch PE Film Solutions using Recycled Plastics
In India, Dow and Lucro Plastecycle have entered into a MOU to develop post-consumer recycled polyethylene (PE) film solutions. The move is expected to develop the circular economy in the country and also expand Dow’s plastics circularity portfolio in the Asia Pacific region.
Mumbai/India – Dow and Lucro Plastecycle, a homegrown Indian recycling company, have recently signed a memorandum of understanding (MOU) to develop and launch polyethylene (PE) film solutions using post-consumer recycled (PCR) plastics in India. This agreement introduces a close-the-loop packaging solution to help enable a circular economy in India and expands Dow’s plastics circularity portfolio in the Asia Pacific region.
This collaboration is aligned with Dow’s new sustainability target of stopping the waste by collecting 1 MMT of plastics to be reused or recycled by 2030. Under the MOU, Dow will provide its material science and application development expertise to Lucro who will develop and manufacture the film structures. These film structures are made by processing plastic waste collected through various recycled streams in combination with Dow’s virgin resins. This approach could also reduce carbon emissions when compared to virgin PE resins and as a result could contribute to helping converters and brands to meet their sustainability goals. The first application of the product is in collation shrink films, a form of secondary packaging commonly used for bottles, cans, and liquid cartons, and is expected to be available in the India market later this year.
“We are delighted to work with sustainability-focused partners like Lucro, who is at the forefront of plastic recycling in India. Scrap packaging is one of the country’s highest contributors of plastic waste and we look forward to this collaboration helping to promote the adoption of sustainable solutions amongst brand owners and manufacturers, and contribute to a reduction in plastics entering the environment as waste,” said Bambang Candra, Asia Pacific commercial vice president, Dow Packaging & Specialty Plastics. “Finding value in flexible waste is key for the circular economy to set new standards for the flexible packaging industry and create a viable circular system for flexible plastics.”
Lucro’s trademark Plast-E-Cycle process, which converts plastic waste into granules for recyclable and compostable products, helps to solve a fundamental challenge in India – the complexity of recycling flexible plastic waste. This specialty made the company the first in India to be backed by Circulate Capital’s Ocean Fund (CCOF), a Singapore-based investment fund dedicated to preventing plastic waste entering the ocean and advancing the circular economy in South and Southeast Asia. With Circulate Capital’s support, Lucro will further grow and scale its business and step-up post-consumer plastic sourcing with new collection centres.
“Circulate Capital invests in and supports pioneering companies across the waste management and recycling industry. Lucro’s work is integral to closing the loop on difficult to recycle plastic waste in India, giving a second life to post-consumer flexible plastic waste. We believe the Dow-Lucro partnership is a great example of how, with catalytic financing, the plastic eco-system can connect and collaborate on market solutions for the benefit of the environment,” said Rob Kaplan, founder and CEO, Circulate Capital.
“Lucro was founded on the belief that there is value to be found in mismanaged plastic waste through recycling. With intent, effort and collaboration across the entire value chain, we can define and build a new plastic value chain that ensures that the material is reused and does not end up in the environment,” said Ujwal Desai, co-founder and managing director of Lucro. “Our partnership with Dow provides us additional expertise to develop high quality, innovative and recycled-content flexible film for businesses.”
Under the MOU, Dow will utilize its industry leading team of packaging experts, material scientists, recycling equipment, blown film manufacturing and testing capabilities at Pack Studios Shanghai and Mumbai to help Lucro develop recycled film. Following the initial application in collation shrink films, the partners will explore additional applications including shipping sacks, e-commerce bags and non-food packaging.