Yahoo Finance DOW & SCGC Ink MOU to Transform 200KTA of Plastic Waste
Dow Inc. DOW and SCG Chemicals ("SCGC") recently signed a first-of-its-kind memorandum of understanding (MOU) circularity collaboration in Asia Pacific to convert 200KTA of plastic waste into circular products by 2030.
The partners plan to expedite value chain technology development in order to enable recycling via both mechanical recycling (MR) and advanced recycling (AR), as well as transform a greater spectrum of plastic waste into high-value products.
The early steps are intended to form a value-growth collaboration with current suppliers for post-consumer recycled materials, as well as create waste sorting, MR and AR technology solutions in Thailand. The phases aim to establish a healthy materials ecosystem in Southeast Asia. This ecosystem will eventually enable better plastic waste collection and recycling.
The parties anticipate that subsequent phases of the collaboration will include sourcing of plastic waste feedstocks in Southeast Asia, including potential expansion into other parts of the regions like Mainland China, Korea, Japan, Taiwan, Australia and New Zealand.
The deal will allow both companies to play a vital role in promoting greater circularity in the region by leveraging DOW's complementary portfolio, research and development capabilities, and technology licensing, Dow noted.
Shares of DOW have gained 13.4% over the past year compared with a 2% rise of industry.
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On the first-quarter call, Dow said that demand in key end-use markets such as packaging, mobility and energy applications are trending higher sequentially, which is in sync with its expectations at the beginning of the year.
The company expects its high-value organic growth investments and advantaged portfolio to allow it to deliver earnings growth and increased shareholder value as the economic recovery gains strength. This provides DOW with the financial flexibility to advance its Decarbonize and Grow and Transform the Waste strategies, which are expected to deliver more than $3 billion in underlying earnings improvement annually by 2030.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Zacks Rank & Key Picks
Dow currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include ATI Inc. ATI, Carpenter Technology Corporation CRS and Ecolab Inc. ECL.
ATI carries a Zacks Rank #1 (Strong Buy) at present. ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have soared 61.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 133.4%% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. ECL, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company’s shares have rallied roughly 35.8% in the past year.
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