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DAK-Shaw to build largest recycling operation

04
May '09
DAK Americas, LLC and Shaw Industries Group, Inc. announced the creation of a new joint-venture company, Clear Path Recycling, LLC, to produce Recycle PET (RPET) from post-consumer PET bottles. DAK, the second largest PET Resin and largest Polyester Staple Fiber producer in the Americas and Shaw, the world's largest carpet manufacturer and leading floor covering provider, will both utilize the RPET material as a feed stock to enhance the value and sustainability of their offerings.

Clear Path Recycling, LLC plans to build a facility to recycle over 280 million pounds annually of PET bottles, or about 5 billion bottles. The RPET material will primarily be used by DAK and Shaw in their polyester based products. An estimated 25 percent of the total recycled material produced will be sold through merchant sales. Construction of the first phase of the new facility is expected to begin in mid 2009 and be operational by the 1st quarter of 2010.

"Clear Path Recycling, LLC is a major milestone in the sustainability initiatives of DAK Americas and reinforces our commitment to protect the environment for future generations," said Hector Camberos, President and C.E.O. of DAK Americas. "The JV allows DAK to deliver on the growing requirements of both its PET Resin and Polyester Staple Fiber customer base for products with recycled content."

"This joint venture investment represents an important strategic benefit to Shaw's PET filament product lines," says Vance Bell, chief executive officer of Shaw. "The recycled content manufactured in this facility, combined with Shaw's patent-pending BCF manufacturing process, will allow us to significantly enhance and expand our innovative Clear Touch BCF family of products."

The joint venture will reduce the use of landfills and improve internal process economics for DAK and Shaw. By recycling 280 million pounds of PET bottles, over 1 million cubic yards per year of landfill space will be conserved. The energy savings related to the Clear Path Recycling, LLC operation will save approximately 2.5 trillion BTUs of energy annually, which is equal to the amount of primary energy necessary to power 18,000 U.S. homes per year, according to Energy Information Administration data.

Clear Path Recycling will construct its new facility in Fayetteville, NC at the DAK Americas' Cedar Creek Site. DAK currently operates a PET resin manufacturing facility on-site and has significant infrastructure in place that the new JV will utilize. Approximately 100 new jobs will be created at the facility at the completion of both phases.

The venture has worked with the NC Department of Commerce and Cumberland County to bring this opportunity to North Carolina and Fayetteville. State 3J Job and Investment Credits, Recycling Incentives, and Local Incentives were significant factors in the site selection.

DAK Americas


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