Dow, a materials science company, has acquired an equity stake in Xycle, a Netherlands-based company that specialises in advanced recycling technology.
The investment was made alongside other companies, including ING, Invest-NL, Polestar Capital, and Vopak.
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The investment aligns with Dow’s focus on transforming plastic waste into high-value materials and advancing a circular economy by expanding and diversifying access to circular feedstock.
The total funding, incorporating both equity investments and senior debt, will support the development of Xycle’s first commercial-scale advanced recycling plant, located strategically within the Port of Rotterdam.
The facility is expected to be fully operational by the fourth quarter (Q4) of 2026, with a planned plastic waste processing capacity of 21,000 tons per annum.
Upon completion, Dow will acquire the circular feedstock produced by the facility that will be used to produce new circular plastics, addressing the increasing demand from global customers and brands, the company said.
This feedstock can be utilised to produce virgin-quality plastics for food-grade packaging, medical devices, and automotive components.
Dow Packaging and Specialty Plastics EMEA commercial vice-president Stephanie Kalil said: “We are thrilled to announce this strategic investment in Xycle which marks another pivotal step towards our goal to transform the waste.
“The performance and efficiency of Xycle’s technology strongly complements our increasingly diverse global portfolio of recycling solutions.
“We believe that the robust financial backing and credibility of our consortium partners demonstrates the strength of the opportunity at hand to scale advanced recycling technologies; to address the plastic waste challenge and meet growing customer demand for circular products.”
Xycle’s technology leverages low-temperature pyrolysis to transform hard-to-recycle plastic waste into pyrolysis oil.
In December last year, Dow sold its flexible packaging laminating adhesives business to Arkema for $150m.
