Dow signed an agreement with the Dutch plastics recycling technology company Fuenix Ecogy Group to use plastic waste for producing new polymers at Dow’s production facilities in the Netherlands.

Based in Weert, Fuenix developed technology that allows sorted post-consumer packaging material to be converted back into oil, which is then processed into circular feedstocks. The company says that its technology can transform 70% of every kilogram of plastic into new plastic with half the carbon dioxide emissions.

“This agreement marks an important step forward to increase feedstock recycling — the process of breaking down mixed waste plastics into their original form to manufacture new virgin polymers,” the two companies said. “The polymers produced from this pyrolysis oil will be identical to products produced from traditional feedstocks, and as such, they can be used in the same applications, including food packaging.”

Under the agreement announced today, Fuenix’s technology will be used at Dow’s production site at Terneuzen in the Netherlands. Dow’s second largest production site, Terneuzen includes 17 plants and has around 1,700 employees.

Creating a circular economy for plastics is one of Dow’s priorities, the company says. The deal with Fuenix also supports Dow’s goal to incorporate a minimum of 100,000 metric tons of recycled plastics into its European Union product offerings by 2025.

“With partners in South America, we have supported the development of construction materials made with recycled plastics for schools, and in Southeast Asia, Mexico, and the United States, we have built roads made with recycled plastics,” said Diego Donoso, business president for Dow Packaging and Specialty Plastics. “We believe plastics are too valuable to be lost as waste and should be part of the circular economy.”

Dow plans to present the company’s recycling portfolio at the international trade fair for plastics and rubber K 2019, which takes place in Dusseldorf, Germany, in October.