Eastman reinstates DOE-backed methanolysis recycling expansion at Kingsport plant

Eastman announced the reinstatement of a U.S. Department of Energy award of $375 million, less about $35 million already received for design and engineering, to expand its methanolysis recycling technology. The updated plan targets roughly 30% more output at the Kingsport, Tennessee methanolysis facility through debottlenecking, restarting underutilized U.S. recycling assets, and milestone-based planning for a potential second U.S. methanolysis plant. Investments will proceed in line with customer contracts and supportive policy.

Key facts

Market context

Polyethylene terephthalate, or PET, is a polyester widely used in beverage bottles, food packaging and synthetic fibers. Methanolysis is a chemical recycling route that breaks polyester waste back into its monomers, which can then be purified and repolymerized into material that approaches virgin quality. This makes it relevant for food-contact applications, where recycled content is often constrained by mechanical recycling limits. Demand is driven mainly by consumer packaging brand owners that have set recycled-content targets, along with regulators and retailers pushing for circular supply. Domestic capacity matters because it shortens supply chains and reduces reliance on imported recycled resin, which can be volatile in price. Projects like this can also tighten the market for recycled PET feedstock and shift competition toward producers able to certify high-quality output at scale.

Source: official release on eastman.com. Summary and context written by Market Krystal.