DOW & Avery Dennison's Adhesive Boosts Package Recycling
Dow Inc. DOW and Avery Dennison, a global materials science and digital identification solutions company, have jointly launched a novel and sustainable hotmelt adhesive solution for the label market. This adhesive allows polyolefin filmic labels and polypropylene (PP) or polyethylene (PE) packaging to be mechanically recycled together in a single stream, which is a significant advancement. This unique adhesive is the first of its kind in the label market and has been granted Recyclass approval for recycling in the HDPE colored stream - Class B.
Hotmelt adhesives are particularly used in chilled applications due to their superior performance. However, the usage of standard hotmelts affects the usability of recycled PP/PE material. This new olefinic hotmelt, on the other hand, has the same chemical composition as PP/PE packaging. When combined with a polyolefin facestock, the label and packaging can be treated as a mono-material, and the two can be recycled together. As a result, this innovative adhesive offers improved recyclability compared to standard hotmelts, without compromising on performance.
Avery Dennison’s focus on design-for-recycling concepts led to the creation of the new adhesive, which was made feasible by Dow’s excellence in polymer science. This adhesive is formulated using Dow's AFFINITY GA Polymers and marketed by Avery Dennison as CF3050 in the Europe, Middle East, and North Africa region.
Dow stated that it is targeting to deliver 3 million metric tons of circular and renewable solutions per year by 2030.
Shares of DOW have lost 13% over the past year against a 2.1% fall of its industry.
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The company, on its fourth-quarter call, said that it is seeing positive signs from moderate levels of inflation in the United States, improving energy outlook in Europe and the re-opening in China. It is also implementing targeted actions focused on optimizing labor and purchased service costs, lowering turnaround spending and boosting productivity. As part of these actions, Dow plans to cut around 2,000 jobs globally. It expects these initiatives to deliver $1 billion in cost savings in 2023. The company also expects to record a charge of $550-$725 million in the first quarter of 2023 for costs related to these actions.
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).
Some better-ranked stocks in the basic materials space are Olympic Steel, Inc. ZEUS, Steel Dynamics, Inc. STLD and Linde plc LIN. LIN currently carries a Zacks Rank #2 (Buy), while ZEUS and STLD sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 33% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 33.1% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 19.2% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 13.6% in the past year. The company has an expected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.38% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.
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