Eastman announced its Kingsport, Tennessee, depolymerisation plant has achieved on-spec initial production and started generating revenue.
The Kingsport PET chemical recycling plant is Eastman’s first operational depolymerisation plant, with a processing capacity of 110,000 tonnes a year. The company expects to ramp up production over the coming months. It estimates the new facility could deliver approximately $75 million of incremental EBITDA (earnings before interest, taxes, depreciation, and amortisation) in 2024.
“We are thankful for the hard work and dedication of our Eastman team members who have worked tirelessly to build and bring this new facility online,” said Mark Costa, Board Chair and CEO. “By demonstrating molecular recycling at this scale, we have solidified our position as a leader in the creation of a circular economy. Demand for recycled material at virgin-quality levels from our new facility remains strong, and we are excited to announce this significant next milestone in our journey.”
Eastman first announced the project in early 2021 and expected it to be mechanically completed by the end of 2022. At the time, it said it would spend a total of $250 million on the project in 2021 and 2022.
In a July 2023 call with investors, Eastman said it wouldn’t disclose the capital cost for the Kingsport facility at the time. Its Q3 2023 financial report disclosed capital expenditures of $413 million in the first six months of 2023, ‘primarily the AM segment methanolysis plastic-to-plastic molecular recycling manufacturing facility in Kingsport, Tennessee, and other targeted growth initiatives and site modernisation projects’. The company then expected the 2023 capital expenditures to total $800 million.
Eastman is also building a second depolymerisation plant in Normandy, France. Phase 1 of the project is expected to be mechanically complete in 2026 and process 100,000 tonnes. The combined capacity of the project’s two phases is expected at 200,000 tonnes. The US-based chemical recycler also has a third plant in the plans, although its location has not yet been confirmed.
In February, Eastman and Rumpke signed a feedstock agreement for hard-to-recycle and colour PET packaging waste for the Kingsport facility.