Plants: Eastman to build US4250 mn molecular recycling facility; Shintech to invest US$1.3 bn for PVC expansion

US firm Eastman Chemical plans to invest US$250 million over the next two years in a facility to make specialty products from plastic waste using its polyester renewal technology

Utilising the company's polyester renewal technology, the new facility will use over 100,000 tonnes of plastic waste that cannot be recycled by current mechanical methods to produce premium, high-quality specialty plastics made with recycled content. This process of using plastic waste as the main feedstock is a true material-to-material solution and will not only reduce the company's use of fossil feedstocks, but also reduce its greenhouse gas emissions by 20-30% relative to fossil feedstocks, it adds.

Eastman was one of the pioneers in developing methanolysis technology at commercial scale and has more than three decades of expertise in this innovative recycling process. Eastman's experience with methanolysis makes it uniquely qualified to be a leader in delivering this solution at commercial scale. Polyester renewal technology will be an especially impactful solution, as low-quality polyester waste that cannot be mechanically recycled and would typically be diverted to landfills, incineration or end up in the environment can instead be recycled into high-quality polyesters suitable for use in a variety of end-use durable applications.

"With the growing demand for products made with recycled content and the urgent need to address the global plastic waste crisis, now is the time for Eastman to take this step. We are grateful for our partnership with Governor Lee in making today's announcement possible," said Costa.

"Thanks to the support of the State of Tennessee and our local officials, we are able to build this facility in our home state, which we believe positions Tennessee to be a leader in enabling the circular economy and an example for others to follow. This will be a great investment for our local community and our customers, while also creating small business jobs to develop the recycling infrastructure necessary to support investment in a sustainable future."

"Eastman has been a leader in the materials sector for over 100 years and continues to be a valued partner to our state," said Governor Lee. "I'd like to thank the company for investing in Kingsport and its highly skilled workforce, and for focusing on innovative technology that enhances the quality of life for people not just in Tennessee, but around the world."

"While today's announcement is an important step, it is just part of the company's overall circular economy strategy," said Costa. He added that Eastman is actively working on next steps forward with its circular economy initiatives including partnerships and direct investments in Europe.

This facility, which is expected to be mechanically complete by year-end 2022, will contribute to the company achieving its ambitious sustainability commitments for addressing the plastic waste crisis, which includes recycling more than 500 million pounds of plastic waste annually by 2030 via molecular recycling technologies. The company has committed to recycling more than 250 million pounds of plastic waste annually by 2025.

In other news, Shintech Louisiana will invest US$1.3 billion to expand its manufacturing and packaging facilities in Iberville and West Baton Rouge. Shintech is the world’s leading manufacturer of PVC. The company will make a US$1.25 billion investment to increase PVC manufacturing capacity and expand chlor-alkali and vinyl chloride monomer capacity at its manufacturing facility in Plaquemine, which was announced in 2018 and is expected to be completed this year. The company also is expanding its PVC packaging and warehouse operation in Addis.

Shintech will retain 530 existing jobs at the Iberville and West Baton Rouge facilities where the company has operated since 1999. The company expects the expansion project to create up to 2,400 constructions jobs. Construction is expected to be completed toward the end of 2023.

The company is expanding its facilities to keep pace with the demand for PVC, used in a variety of applications in the building and construction industries as well as health care, electronics, automobile and other sectors. Shintech is a wholly owned subsidiary of Japan-based Shin-Etsu Chemical Co. Ltd.

Shintech has invested more than US$7 billion in its Louisiana operations in Iberville and West Baton Rouge.

(PRA)

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