# Eastman Sets a $500 Million Starting Point for 2027 Capital Spending

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/45046
Published: 2026-10-30T19:12:25.000Z
Updated: 2026-10-30T19:12:25.000Z
Section: Business

> A reinstated $375 million Department of Energy award supports plans to raise Kingsport output by about 30% and restart and repurpose underused U.S. recycling assets.

Eastman Chemical Company will include Kingsport’s first expansion phase in a $500 million 2027 capital starting point as a reinstated federal award supports its broader U.S. recycling plan.

Eastman announced Oct. 29 that the Department of Energy (DOE) had reinstated a $375 million award for the plan. Approximately $35 million Eastman previously received for design and engineering under the earlier agreement is deducted from the award. Investments are to advance in stages aligned with customer contracts and supportive policy.

The updated scope calls for raising output at the Kingsport, Tennessee, facility by about 30% through debottlenecking and technology improvements. It also includes restarting and repurposing underused U.S. recycling assets, and planning for a potential second U.S. methanolysis facility. Eastman has not specified a location or timeline for a second facility. The Kingsport debottlenecking is expected to require modest capital investment.

Kingsport is Eastman’s first commercial-scale methanolysis facility. The technology converts difficult-to-recycle plastics, including colored or opaque polyester and pots, tubs and trays, into molecular inputs that can be used to produce virgin-quality materials.

Chief Financial Officer Willie McLain gave about $500 million as the baseline starting point for 2027 capital spending during Eastman’s third-quarter earnings call Friday, Oct. 30. He put expected 2026 capital spending at about $400 million. The first phase includes investment in the methanolysis operation and supporting feedstock and processing infrastructure.

McLain said the Kingsport work and related infrastructure would count as incremental spending, while DOE support would keep the 2027 outlook broadly intact. Board Chair and CEO Mark Costa said capital allocation would depend on cash flow and economic conditions.

Eastman expects up to $100 million in incremental revenue growth from Kingsport in 2026 compared with 2025, followed by more than $100 million in additional growth in 2027. Costa said the partnership could strengthen U.S. manufacturing and make the domestic supply chain for recycled materials more resilient.