Eastman Secures Reinstated $375 Million DOE Award to Expand U.S. Polyester Recycling Capacity

Eastman Chemical Company has announced the reinstatement of a $375 million award from the U.S. Department of Energy (DOE) to support domestic polyester recycling infrastructure. Approximately $35 million has already been received under the previous agreement for design and engineering work. The restored funding will support an updated investment strategy focused on expanding existing recycling capacity and bringing underutilized U.S. facilities back into operation.

A central component of the revised plan involves Eastman's commercial-scale methanolysis facility in Kingsport, Tennessee. Through process improvements and the removal of production bottlenecks, the company expects to increase the facility's output by approximately 30% with relatively modest additional capital investment. Eastman also projects up to $100 million in incremental revenue growth from the Kingsport facility in 2026 compared with 2025, followed by more than $100 million in additional growth in 2027.

Beyond Kingsport, Eastman intends to restart or repurpose underutilized recycling assets in the United States to strengthen domestic collection and processing infrastructure for difficult-to-recycle polyester waste. Plans for a second U.S. methanolysis facility remain under consideration, with flexibility retained over its location and construction schedule. Future investments will proceed according to project milestones, customer commitments and supportive policy conditions.

Methanolysis technology enables the recovery of polyester materials that are difficult to process through conventional mechanical recycling, including colored and opaque plastics, trays and other mixed-format polyester packaging. By breaking these materials down into molecular components, the process can produce recycled polyester suitable for high-quality applications, including food-contact packaging.

Eastman's updated strategy places greater emphasis on improving the utilization of existing industrial infrastructure while expanding the supply of recycled materials for domestic manufacturing. For recycling operators and material suppliers, additional polyester processing capacity could create new outlets for waste streams that currently have limited recycling options. However, the pace of expansion will depend on commercial demand, project execution and the availability of suitable feedstock.

Source: Eastman Chemical Company

SUNSHINE Spotlight: Eastman's revised investment approach illustrates the growing importance of combining advanced recycling technology with existing collection and processing infrastructure. Expanding operational capacity and reactivating underutilized facilities may offer a more flexible route to increasing recycled polyester supply than relying exclusively on new plant construction.