US recycling company Eastman's Kingsport, Tennessee, molecular recycling facility had its strongest year for chemical recycling in 2025, producing more than 2.5 times the amount of recycled content that it produced in 2024.
The Kingsport facility generated approximately $60mn in incremental earnings in 2025 compared with 2024, as chemically recycled materials saw increased use from major brands including Pepsi.
Eastman expects that momentum to continue into 2026 and projects about $39mn in additional circular economy earnings as rPET contract volumes increase and demand for chemically recycled content strengthens.
"We are really the long-term solution to chemical recycling," said Mark Costa, board chair and chief executive officer. He added that mechanical recycling yields remain low because the process only cleans 25-35pc of clear bottles.
Mechanical rPET degrades faster than expected, causing yellowing, graying, and even structural issues such as bottle collapse during case stacking, the company said.
Eastman plans to expand the Kingsport facility's production capacity by 130pc to increase supply growth while development of a second chemical plant remains paused.
The second facility is on hold following the loss of a US Department of Energy grant in June 2025. However, the Kingsport expansion and improved efficiency will allow Eastman to continue scaling chemical recycling production while maintaining strong cash flow. The company generated nearly $1bn in operation cash flow in 2025, reinforcing its ability to continue investing in circular technology despite market uncertainty.
