US-based chemicals company Dow has finalised the sale of its flexible packaging laminating adhesives business to French adhesive manufacturing company Arkema for $150m.

The transaction includes five manufacturing sites across Italy, the US, and Mexico, encompassing solvent-based and solventless laminating adhesives, as well as heat-seal coating product portfolios.

The deal, first announced on 2 May 2024, is part of Dow's strategic realignment to bolster its growth strategies and enhance shareholder value.

The proceeds will be directed towards Dow's capital allocation priorities.

Earlier this year, Dow announced its acquisition of Circulus, a mechanical recycler, with two US facilities in Ardmore, Oklahoma, and Arab, Alabama, totalling a capacity of 50,000 tonnes annually.

Despite the sale, Dow retains significant interests in the adhesives sector. The company continues to hold its water-based laminating adhesives, acrylic adhesives, and adhesive solutions businesses. These sectors remain integral to Dow's ongoing growth and sustainability strategies.

Arkema secured mass balance International Sustainability and Carbon Certification at its powder coating resins facility in Sant Celoni, Spain, this July.

Last month, Dow signed a memorandum of understanding with Guangdong Delian Group to improve the sustainability of automotive packaging. The partnership focuses on increasing the use of post-consumer recycled resins, advancing the industry's move towards a circular economy.

Delian Group has incorporated Dow's REVOLOOP recycled plastic resins into its product packaging.

Dow launched two technology advancements at its Pack Studios facility in Freeport, Texas, US, this August, further expanding the company’s circular capabilities.