Dow and Lucro to Launch PCR Plastics Solution in India

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Mumbai, India –  Dow (NYSE: DOW) and Lucro Plastecycle, a homegrown
Indian recycling company, have signed a memorandum of understanding (MoU) to develop and
launch polyethylene (PE) film solutions using post-consumer recycled (PCR) plastics in India.
This agreement introduces a close-the-loop packaging solution to help enable a circular economy
in India and expands Dow’s plastics circularity portfolio in the Asia Pacific region.

This collaboration is aligned with Dow’s new sustainability target of stopping the waste by
collecting 1 MMT of plastics to be collected, reused or recycled by 2030. Under the MoU, Dow
will provide its material science and application development expertise to Lucro, a specialist in
recycling flexible plastic film waste, who will develop and manufacture the film structures. These
film structures are made by processing plastic waste collected through various recycled streams
in combination with Dow’s virgin resins. This approach could also reduce carbon emissions when
compared to virgin PE resins and as a result could contribute to helping converters and brands to
meet their sustainability goals. The first application of the product is in collation shrink films, a
form of secondary packaging commonly used for bottles, cans, and liquid cartons, and is expected
to be available in the India market later this year.

“We are delighted to work with sustainability-focused partners like Lucro, who is at the forefront
of plastic recycling in India. Scrap packaging is one of the country’s highest contributors of plastic
waste and we look forward to this collaboration helping to promote the adoption of sustainable
solutions amongst brand owners and manufacturers, and contribute to a reduction in plastics
entering the environment as waste,” said Bambang Candra, Asia Pacific commercial vice
president, Dow Packaging & Specialty Plastics. “Finding value in flexible waste is key for the
circular economy to set new standards for the flexible packaging industry and create a viable
circular system for flexible plastics.”

Lucro’s trademark Plast-E-Cycle™ process, which converts plastic waste into granules for
recyclable and compostable products, helps to solve a fundamental challenge in India – the
complexity of recycling flexible plastic waste. This specialty made the company the first in India
to be backed by Circulate Capital’s Ocean Fund (CCOF), a Singapore-based investment fund
dedicated to preventing plastic waste entering the ocean and advancing the circular economy in
South and Southeast Asia. With Circulate Capital’s support, Lucro will further grow and scale its
business and step up post-consumer plastic sourcing with new collection centres.

“Circulate Capital invests in and supports pioneering companies across the waste management
and recycling industry. Lucro’s work is integral to closing the loop on difficult to recycle plastic
waste in India, giving a second life to post-consumer flexible plastic waste. We believe the Dow-
Lucro partnership is a great example of how, with catalytic financing, the plastic eco-system can
connect and collaborate on market solutions for the benefit of the environment,” said Rob Kaplan,
founder and CEO, Circulate Capital.

“Lucro was founded on the belief that there is value to be found in mismanaged plastic waste
through recycling. With intent, effort and collaboration across the entire value chain, we can define
and build a new plastic value chain that ensures the material is reused and does not end up in
the environment,” said Ujwal Desai, co-founder and managing director of Lucro. “Our partnership
with Dow provides us additional expertise to develop high quality, innovative and recycled-content
flexible film for businesses.”

Under the MoU, Dow will utilize its industry leading team of packaging experts, material scientists,
recycling equipment, blown film manufacturing and testing capabilities at Pack Studios Shanghai
and Mumbai to help Lucro develop recycled film. Following the initial application in collation shrink
films, the partners will explore additional applications including shipping sacks, e-commerce bags
and non-food packaging.

About Dow
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business
positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric,
inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world
through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial
intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and
solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer
care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow
delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its
subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

About Lucro
Lucro Plastecycle Private Limited (Lucro) is a homegrown Indian recycling company that harnesses the possibilities of
plastic to produce high quality and innovative recycled-content products. Established in 2012, the company is an expert
in recycling locally-sourced flexible plastic waste to manufacture flexible packaging products, such as shrink wrap and
films, and supplies recycled plastic granules to manufacturers for their own production. By developing a unique
integrated process that covers the collection, sorting and upcycling of used flexible plastic, Lucro is committed to closing
the loop in plastic usage by transforming it from a linear to a circular economy and stopping it from reaching landfill.
Today, the company is the largest supplier of recycled packaging and protective covers to leading national and
international manufacturers in India across a range of industries such as automotive, home and retail, to help them
achieve their sustainability goals. For more information, please visit www.lucro.in.

About Circulate Capital
Circulate Capital is an investment management firm dedicated to incubating and financing companies that prevent
ocean plastic. We focus on the prevention of mismanaged plastic waste in countries located in South Asia and
Southeast Asia, regions that contribute disproportionately to ocean plastic pollution primarily because they often lack
investment in critical waste and recycling infrastructure to manage the problem. We were created in collaboration with
Ocean Conservancy, and our founding investors include PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever,
The Coca-Cola Company and Chevron Phillips Chemical Company LLC.

Circulate Capital invests in and supports start-ups, organizations and SMEs across the entire plastic value chain, from
innovations in material to advanced recycling technologies. It seeks to mobilize catalytic capital into the waste
management and recycling industry to prove that investing in this sector is scalable in South and Southeast Asia and
can generate competitive returns, while moving to solve the ocean plastic crisis.