Evergreen Recycling to Shut Ohio, New York Plants After Lender Action

Evergreen Recycling LLC will close its plastics recycling operations in Clyde, Ohio, and Albany, New York, eliminating 165 positions in Clyde and affecting a total workforce of 247 across both sites, state filings show. The company attributed the shutdown to actions taken this month by its revolving credit lender, a move that industry observers say underscores the financial strain facing parts of the U.S. plastics recycling sector.

A notice filed with Ohio authorities under the Worker Adjustment and Retraining Notification Act indicates that most layoffs at the Clyde facility will take effect Feb. 24, with all separations expected to be completed by April 24. The Albany plant also is slated to close permanently. 

In a statement included in the filing, Evergreen said its lender swept company cash on Feb. 13 and later informed management it intended to assume control of working capital assets and halt further funding. The company said it had been in discussions with potential buyers and anticipated receiving at least one non-binding letter of intent, but the lender’s decision left it unable to continue operations.

The Clyde facility accounts for the bulk of the job losses. Of the 165 employees affected there, 103 work in operations, with additional staff in maintenance, quality control, shipping and receiving, accounting, human resources, IT and safety. The company’s chief executive officer also is included in the layoffs. Evergreen told state officials it has provided workers with information on unemployment assistance through Ohio Job and Family Services.

Evergreen operates a third plastics recycling plant in Canada, according to its website. The Albany location is unionized, while the Clyde plant is not, meaning employees in Ohio will not have contractual bumping rights.

Founded in 1998, Evergreen expanded its Clyde operation as recently as 2022, reflecting broader investment trends during a period of strong demand for recycled resins. Over the past several years, however, recycled plastics markets have been volatile. Analysts point to pressure from low-cost virgin resin, elevated operating costs and tighter credit conditions as headwinds for independent processors. Data published by industry groups including the Plastics Industry Association have shown fluctuating capacity utilization rates and margin compression among reclaimers since 2023.

Access to working capital is particularly critical for recyclers, which must finance feedstock purchases and manage inventory swings. Observers note that revolving credit facilities are commonly used to smooth cash flow, leaving companies vulnerable if lenders reassess risk or tighten terms. Industry groups have argued that policy uncertainty and uneven end-market demand have compounded financial challenges for mid-sized operators.

The abrupt nature of Evergreen’s closure could ripple through regional supply chains. Municipal programs and commercial customers that relied on the Clyde and Albany plants will need alternative outlets for material. Analysts say consolidation within the recycling sector may accelerate as larger, vertically integrated firms with stronger balance sheets absorb distressed assets.

For affected workers, the timeline leaves little transition period. Local economic development officials were not immediately available for comment on potential assistance or redevelopment plans for the Clyde site.

The shutdown marks a sharp reversal for a company that recently invested in expansion, highlighting how quickly financing conditions can reshape the recycling landscape.

Source: Plastic News

SUNSHINE Spotlight: Evergreen’s sudden plant closures reveal how tightening credit and market volatility can swiftly derail even recently expanded recycling operations.