Plans to build a $300 million plastics recycling plant in Erie have been canceled, according to Erie Regional Chamber and Growth Partnership.

International Recycling Group says federal funding cuts and economic uncertainty forced them to pull the project. The facility was set to receive a $192 million EPA loan.

The Chamber expressed frustration, calling it a major loss for the community. CEO Brandon Mendoza said the project had strong local and state support and could have brought significant economic benefits to Erie.

“The Erie Regional Chamber is frustrated by the financial pressure building due to economic uncertainty at the federal level, which IRG cited as the reason to cancel plans for its Erie plastics recycling plant project," said Mendoza. "We recognize the significant economic opportunities it could have brought to Erie. This project had significant support at the state and local level, across public and private sectors, and to see it pulled is a significant loss."

The Chamber said it is working with state officials to redirect $5 million in state funding originally allocated to the project.

The IRG project would have converted 160,000 tons per year of post-consumer waste plastic into approximately 100,000 tons per year of recycled plastic materials to replace virgin plastics. It also would have produced roughly 20,000 tons per year of CleanRed from residual plastic output. 

CleanRed lowers emissions in the steelmaking process and has been used for decades in Europe and Asia.

According to IRG, the project would have resulted in zero plastic waste going to landfill as well as lower emissions in the steel manufacturing process. 

“Over four years ago, we brought the IRG project to Erie with the intention of creating high-paying, family-sustaining jobs and turning Erie into a leader in environmental sustainability by replacing new plastic production with reused and recycled materials gathered from homes across the region. I am personally devastated after 18 years of working to bring this vision to a reality that we have failed to overcome these challenges,” said Mitch Hecht, the company’s founder and Chief Executive Officer.


“It was not for lack of support from virtually everyone in the city of Erie, which has been tremendous from the very first day we brought our vision to the city in October 2019. I want to extend my deepest thanks to the Erie community, including all its elected officials, community leaders on Erie’s eastside, and the many Erie residents concerned about the environment who supported our efforts over the past four years. I especially want to thank Erie Insurance and the Prischak family of Plastek Group for making a substantial investment in a bold and groundbreaking vision for Erie’s future. Enormous thanks go to community leaders Andre Horton and Gary Horton for their time, dedication, and belief in the potential this project held for Erie’s eastside, and, finally, to the administration and faculty at Penn State Behrend for lending their substantial support and expertise.”

 

Additionally, the newBin collection service in the Erie community has also been suspended. The company will be removing the remaining material that has been collected. 

Angela Ferritto, the President of the Pennsylvania AFL-CIO, released the following statement regarding the cancellation of the project: 

The International Recycling Group Inc. has announced the cancellation of its plans to develop a $300 million plastics recycling plant in Erie, Pennsylvania, because of financial uncertainties caused by reckless federal funding cuts.

This project promised 300 new, good-paying jobs, jobs that Erie County was counting on to support working families and strengthen the regional economy. Now, those opportunities have been taken away — yet another example of how federal disinvestment is gutting communities and leaving workers behind.

The Pennsylvania AFL-CIO remains committed to fighting for the interests of working people at both the local and state level. Working families deserve leadership that invests in their future.

We call on policymakers and elected officials, particularly Mike Kelly, who represents the 16th Congressional District, to stand with union workers and protect the essential funding that keeps Pennsylvania’s economy strong.