Department of Energy reinstates Eastman award to advance U.S. manufacturing leadership and strengthen the domestic recycled plastics supply chain

KINGSPORT, Tennessee

Eastman (NYSE: EMN) today announced the reinstatement of a previous U.S. Department of Energy (DOE) award supporting the reindustrialization of a strategically important domestic recycled-plastics supply chain. The award provides an opportunity for Eastman and DOE to advance an updated investment plan that expands proven, U.S.-developed methanolysis technology, restores underutilized American recycling assets and increases domestic capacity to transform difficult-to-recycle polyester waste into virgin-quality recycled materials.

The reinstated award is $375 million, less approximately $35 million Eastman has received related to investment in design and engineering under the previous agreement. Investments will advance in a disciplined, milestone-based manner aligned with customer contracts and supportive policy. The project scope has been adapted with key investment benefits, including:

• Expanding proven U.S. advanced manufacturing technology by increasing output from Eastman’s commercial-scale methanolysis facility in Kingsport, Tennessee, by approximately 30% through debottlenecking and technology advancements
• Reindustrializing existing American recycling assets and strengthening the critical recycled PET supply chain by restarting and repurposing underutilized U.S. recycling infrastructure
• Creating a disciplined pathway for our second U.S. methanolysis facility, including flexibility in the location and timing of a potential second U.S. methanolysis facility

The reinstated award will support an integrated U.S. manufacturing strategy spanning waste processing, advanced recycling, and production of virgin-quality recycled materials. The updated scope includes the debottlenecking of Eastman’s Kingsport methanolysis facility, the restart and repurposing of underutilized U.S. recycling assets, and milestone-based planning for a potential second U.S. methanolysis facility. Together, these investments are intended to strengthen domestic infrastructure for collecting and processing difficult-to-recycle polyester waste and converting it into valuable raw materials for American manufacturing.

“The Department of Energy is proud to support this strategic investment in American ingenuity, industrial competitiveness, and the future of U.S. manufacturing,” said Assistant Secretary of Energy Audrey Robertson. “By expanding its proven, American-made recycling technology and putting underutilized assets back to work, Eastman is demonstrating how innovation can strengthen domestic manufacturing, revitalize existing industrial infrastructure, and build more resilient supply chains. DOE will continue to collaborate with private industry to make U.S. manufacturing the strongest in the world and grow jobs and economic prosperity.”

“This partnership represents an opportunity to strengthen American manufacturing by building a more resilient domestic supply chain for recycled materials,” said Mark Costa, Eastman board chair and chief executive officer. “Eastman is demonstrating that methanolysis technology can transform difficult-to-recycle polyester waste into virgin-quality materials at a commercial scale. With DOE’s support, we can accelerate the expansion of this technology, restoring the productive use of existing American industrial assets in a disciplined way that aligns with customer demand.”

The reinstated award builds on the success of Eastman’s U.S.-developed methanolysis technology and the performance of its first commercial-scale facility, located in Kingsport. As previously shared, the company expects up to $100 million of incremental revenue growth in 2026 compared with 2025 from the Kingsport facility and more than $100 million of incremental revenue growth again in 2027. Eastman has also identified an opportunity to increase Kingsport methanolysis capacity by approximately 30% through debottlenecking with modest capital investment that will now be included in the updated scope of the DOE funding.

“For our customers, this creates an opportunity to act now,” Costa said. “By partnering with Eastman, they can secure reliable domestic sources of high-quality recycled content while helping build responsible recycling end markets that convert more hard-to-recycle waste into valuable materials. Customer commitments are what will translate this proven technology into a stronger, more resilient U.S. circular economy.”

Eastman’s proven recycling technology gives hard-to-recycle plastic waste that would otherwise be landfilled or incinerated a new life. The process breaks down plastic waste that cannot be efficiently mechanically recycled, such as colored and opaque polyesters, pots, tubs and trays, to its molecular building blocks and reassembles them into virgin-quality materials without compromising performance. By keeping valuable molecules in production through a high-yield material-to-material loop, Eastman transforms waste plastic into virgin-quality, food-contact polyesters with lower greenhouse gas emissions than traditional production methods.

Forward Looking Statements

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