Dow’s Collaboration With Luhai to Boost Plastics Circularity


Dow Inc.


DOW

and the Xiamen, China-based integrated waste management company, Luhai, have recently announced their collaboration to increase the circularity of plastics in China by giving plastics waste collected by Luhai a second life.

Dow’s latest arrangement is in line with its new sustainability targets enabling one-million metric tons of plastic to be collected, recycled or reused through its direct actions as well as partnerships by 2030. Luhai’s waste management action is focused on collecting and recycling several types of post-consumer plastics.

This strategic partnership will enable Dow to use its expertise to develop new circular plastic solutions for the Asia Pacific market from the plastic waste collected by Luhai. Dow’s goal is to protect the ecosystems by diverting plastic wastes from the environment. Through this collaboration, Dow aims to demonstrate the value of recycled plastics and increase the recycling and collection of post-consumer plastics in local communities.

Dow’s shares have lost 13.2% year to date compared with 7.4% decline recorded by the

industry

.

Dow is likely to gain from cost-synergy savings and productivity actions. It focuses on maintaining cost and operational discipline through cost synergy as well as stranded cost-removal initiatives.

It is also benefiting from higher demand for its materials across healthcare and packaging markets, thanks to the coronavirus pandemic. The outbreak has led to a surge in demand for health, hygiene and safety products.

Zacks Rank & Other Key Picks

Dow currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Brenntag AG

BNTGY

, Pretium Resources, Inc.

PVG

and Yamana Gold Inc.

AUY

, each carrying a Zacks Rank #2 (Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Brenntag has an expected earnings growth rate of 2.9% for 2020. The company’s shares have surged 34% in the past year.

Pretium Resources has an expected earnings growth rate of 20% for 2020. Its shares have returned 9.5% in the past year.

Yamana has an expected earnings growth rate of 84.6% for 2020. The company’s shares have gained 78.1% in the past year.

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