Eastman Chemical Co. has signed a deal to supply beverage giant PepsiCo Inc. from its proposed third chemical recycling plant.
"We are excited to have reached a definitive agreement with PepsiCo for our third planned molecular recycling facility, demonstrating our leadership position to create significant value in the circular economy," Eastman Chairman and CEO Mark Costa said in an Oct. 27 earnings release.
Eastman's first chemical recycling plant is set to open early next year in Kingsport, Tenn., where the firm is based. A second plant will open in Normandy, France, in 2025. Interzero Plastics Recycling of Germany will supply the French plant with PET household packaging waste as feedstock.
Eastman has not announced the location of the third chemical recycling plant, although the company has approached school district officials in Texas City, Texas, regarding the potential of tax breaks.
In the third quarter, Eastman's sales roughly were flat at $2.7 billion vs. the year-ago period. Net earnings fell almost 18 percent to $301 million in the same comparison.
Sales for the quarter in Eastman's Advanced Materials unit — including Tritan-brand copolyester — were up 15 percent to $888 million, with earnings before interest and taxes (EBIT) up almost 5 percent to $131 million.
On Wall Street, Eastman's per-share price began the year around $122 but closed near $77 on Oct. 31 for a decline of almost 40 percent so far in 2022.
Eastman employs 14,000 worldwide and posted sales of $10.5 billion in 2021.