Citing federal funding loss, Eastman to delay construction of $1.2B recycling plant in Harrison County

Published 11:45 am Monday, August 4, 2025

Eastman Chemical Co. leaders will delay construction of a $1.2 billion molecular recycling facility in Harrison County for two years after losing $375 million in federal funding for the project.

The U.S. Department of Energy canceled the $375 million grant in May as part of federal cost-cutting measures. Eastman CEO Mark Costa told investors during an Aug. 1 call that the company will appeal the loss of the funding but that the process to do so wouldn’t be easy or swift.

In a statement, Eastman spokeswoman Kristin Parker said: “While we continue to pursue an appeal for the DOE award revocation, it is clear this will not be a short process and significant uncertainties remain. Therefore, we are reassessing the project scope and timing of our second U.S. methanolysis facility planned for Texas.“

Parker added: “Eastman remains confident in its leadership position in the circular economy and the value of this technology to help solve the plastic waste crisis and will continue to share progress as further decisions on project timing and scope are determined.”

Eastman was set to break ground on construction of the new facility later this year, which would be the largest single economic investment in Longview-area history.

Officials announced in spring 2024 that Eastman would receive the federal grant to build the molecular recycling facility, which would melt down discarded plastic for reuse. Company officials said the plant would use an innovative approach to recycling plastic waste.

The plant is expected to create roughly 1,000 temporary jobs during construction and roughly 200 permanent jobs. Local entities awarded tax incentives to the company to build the plant.

In the investor call, Costa said company leaders “are certainly not happy about losing the DOE grant, and we’re highly engaged to try and get it back,” according to the Plastics Recycling Update news website. “That’s a highly uncertain process, and so we’re focusing on what else can we do.”

Harrison County Judge Chad Sims said Monday that he is saddened by the project delay, as the addition of the plastics recycling facility would be “huge” for his county.

“The jobs that this new business will create are significant in addition to the environmental benefits,” he said. “Our economy produces incredible amounts of plastic that ends up in landfills. This process would enable the reuse of huge amounts of plastics, reduce volumes entering landfills and put many to work.  It’s a win for all of us, and I hope to hear of a resolution soon.”

Gregg County Judge Bill Stoudt echoed those comments Monday, saying he wishes the best for the company and that he hopes the company can resolve the situation.

“That’s additional jobs and growth for the community,” he said.

Wayne Mansfield, CEO of the Longview Economic Development Corp, said he understands the company’s decision and that he hopes the project can be resurrected.

“We’ll always continue to support Eastman in their efforts for expansion and look forward to our continued partnership,” Mansfield said.