11:00 AM EDT, 05/16/2024 (MT Newswires) -- Dow (DOW) is working with privately held Freepoint Eco-Systems Supply & Trading to produce 65,000 metric tons of pyrolysis oil each year from waste plastics that it will use to make new, virgin-grade equivalent plastics at a Dow facility on the US Gulf Coast, the chemicals company said Thursday.

Under the terms of the partnership, Freepoint will be responsible for processing plastics at a new facility it expects to build in Arizona and converting it into recycled pyrolysis oil that will be sold exclusively to Dow. The new Freepoint facility is expected to be operational as soon as 2026, the companies said.

Separately, Dow disclosed a similar agreement with SCG Chemicals in Thailand with plans to recycle as much as 200,000 tons of waste plastics yearly. The companies expect to obtain plastic waste feedstocks from throughout southeastern Asia and eventually expand into other parts of the region, including China, Taiwan, Korea and Japan, as well as into Australia and New Zealand.

Financial terms for either of the agreements were not disclosed.

Dow shares were edging higher in recent trading on Thursday.

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