Business Wire·Oct 29, 2026, 4:05 PM ET

Department of Energy Reinstates Eastman Award to Advance U.S. Manufacturing Leadership and Strengthen the Domestic Recycled Plastics Supply Chain

Eastman has reinstated a U.S. Department of Energy award to support the reindustrialization of a domestic recycled-plastics supply chain.
The total reinstated award value is $375 million, reduced by approximately $35 million previously received for design & engineering investments.
The project aims to expand Eastman's commercial-scale methanolysis facility in Kingsport, Tennessee, by approximately 30% through debottlenecking & technology advancements.
Investments will focus on restarting & repurposing underutilized American recycling assets to strengthen the critical recycled PET supply chain.
The updated scope includes a disciplined pathway for a potential second U.S. methanolysis facility with flexibility in location & timing.
Eastman expects up to $100 million in incremental revenue growth from the Kingsport facility in 2026 & more than $100 million in 2027.
The initiative converts difficult-to-recycle polyester waste into virgin-quality materials, reducing greenhouse gas emissions compared to traditional production.
Assistant Secretary of Energy Audrey Robertson emphasized the partnership's role in enhancing American industrial competitiveness & creating jobs.
Eastman CEO Mark Costa stated the collaboration will accelerate the expansion of proven methanolysis technology while aligning with customer demand.
The company's technology breaks down colored & opaque polyesters into molecular building blocks to create high-quality recycled content for food-contact applications.