Read this article in French German Italian Portuguese Spanish
US recycling firm cancels $300mn project over tariffs
16 April 2025
construction of a long-planned plastics recycling facility in Erie, Pennsylvania, US, has been officially cancelled by its developer, International Recycling Group (IRG), citing financial pressures and regulatory uncertainty.
An aerial view of Erie, Pennsylvania, US (Image: Adobe Stock)
The company attributed the decision to stalled federal loan support and concerns about tariffs on materials and equipment.
It also noted a shift away from corporate sustainability pledges, which it said would weaken market demand for recycled plastics.
The US$300-million project was originally proposed for a former papermill in Erie and was expected to create hundreds of jobs. However, IRG said it could no longer justify moving forward.
鈥淚 am personally devastated鈥� that we have failed to overcome these challenges,鈥� said Mitch Hecht, IRG鈥檚 CEO and founder, via a .
According to the company, no state or federal grants were spent on construction. The US Department of Energy had previously announced a conditional loan guarantee for the project in the amount of $182 million. The only public funding drawn was a $300,000 loan from the Erie County Redevelopment Authority, secured by a lien on the property and expected to be repaid in full.
The Erie Regional Chamber and Growth Partnership called the cancellation a 鈥渟ignificant loss,鈥� and said it would work with Pennsylvania鈥檚 Governor鈥檚 Office to redirect $5 million in unused Redevelopment Capital Assistance Program (RCAP) funds previously awarded to the project.
Materials already collected at the site will be stored while IRG seeks buyers. If no recycler is found, the material will be sent to landfill.
必赢体育
STAY CONNECTED
Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.
CONNECT WITH THE TEAM
