Dow, Gruppo Fiori develop process to recycle car foam without disassembly

MIDLAND, Mich. - Dow (NYSE:DOW), a prominent player in the chemicals industry with a market capitalization of $17 billion, and Gruppo Fiori have developed a new process that recovers polyurethane foam waste from end-of-life vehicles without requiring disassembly, the companies announced Wednesday. According to InvestingPro analysis, Dow currently appears undervalued based on its Fair Value metrics.

The innovation aims to create a closed-loop recycling system for automotive polyurethane foam, which is extensively used in vehicle seating and interiors. A typical car contains approximately 28 kg of polyurethane, with 10-15 kg found in seats alone. This initiative comes as Dow faces operational challenges, with InvestingPro data showing weak gross profit margins of 8% and significant debt levels in its latest reporting period.

Traditional automotive recycling methods require disassembling components before materials can be recovered, adding cost and complexity. The new process eliminates this step while producing a polyurethane waste stream pure enough for chemical recycling through depolymerization.

The technology keeps valuable materials out of landfills and helps automotive manufacturers meet upcoming mandatory recycled content requirements from the End of Life Vehicle Regulation, according to the press release.

"By partnering with Gruppo Fiori, we aim to help OEMs and component manufacturers meet their sustainability goals and regulatory requirements for recycled content without sacrificing the performance benefits of polyurethanes," said Dr. Esther Quintanilla, global MobilityScience marketing director at Dow Polyurethanes.

The development builds on a memorandum of understanding signed between the companies in 2024 to create a new ecosystem for recycling end-of-life vehicle materials.

Mauro Grotto, president of Italmetalli, a Gruppo Fiori company, noted that the partnership combines Gruppo Fiori’s expertise in recovering materials from end-of-life vehicles with Dow’s depolymerization capabilities.

The recovered materials will support Dow’s Renuva portfolio of recycled materials, which focuses on transforming waste streams into new raw materials through mechanical and chemical recycling. With revenue of $41.8 billion in the last twelve months, Dow’s strategic initiatives are crucial for its future growth. For deeper insights into Dow’s financial health and growth prospects, including 10 additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert analysis.

In other recent news, Dow Inc reported its second-quarter 2025 earnings, which revealed a larger-than-expected loss and a decline in revenue. The company posted an earnings per share (EPS) of -$0.42, significantly missing the forecast of -$0.16. Revenue also fell short of expectations, coming in at $10.1 billion compared to the anticipated $10.24 billion. These results have raised concerns among investors regarding the company’s performance. While there was a notable reaction in the stock market, the focus remains on the financial figures reported. The earnings miss and revenue shortfall are key aspects for investors to consider. No updates on mergers or acquisitions were mentioned in the recent developments. Additionally, there have been no recent analyst upgrades or downgrades reported for Dow Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.