Article Number: 4545
Shaw enters bottle-recycling business, Joint venture to build largest PET operation in America
DALTON—Shaw Industries and DAK Americas have announced the creation of a new joint venture company, Clear Path Recycling, LLC (CPR), to produce recycled PET (RPET) from post-consumer plastic drinking bottles. Shaw is the initial majority partner in CPR.

“The venture is initially being setup with Shaw Industries as the majority owner,” noted Vance Bell, Shaw’s CEO, “however, Shaw and DAK will work together in a true partnership to run the facility and create the RPET that both Shaw and DAK will utilize in their respective businesses.

“The first phase of the new facility will process 160 million pounds of post consumer PET bottles,” he explained. “Construction is expected to begin in mid 2009, with the plant operational in the first quarter of 2010. The second phase of the project is planned for completion in 2012, and will make Clear Path the largest PET recycling operation in North America.”

CPR plans to build a facility to recycle over 280 million pounds annually of PET bottles, or about five billion bottles. It will construct its new facility in Fayetteville, N.C., at the DAK Americas’ Cedar Creek Site. DAK currently operates a PET resin manufacturing facility onsite and has significant infrastructure in place that the new JV will be able to utilize.

Regarding who will run the operation, Hal Long, Shaw’s vice president of manufacturing, noted, “For now we will have a business manager and plant manager who will report to the CPR board.”

CPR will produce material known as RPET (Recycled PET) flake. This RPET flake (clean processed, shredded PET material) is then used as a raw material for Shaw’s carpet manufacturing process and DAK Americas’ PET resin and polyester staple fiber manufacturing processes. Shaw will utilize this venture to supply the growth of ClearTouch. “The intent of CPR is to source and process PET bottles to RPET flake which will be converted into BCF,” Bell said. “This post consumer waste flow will be the primary focus.”

The RPET material will primarily be used by Shaw and DAK in their polyester based products. “This joint venture represents an important strategic benefit to Shaw’s PET filament product lines,” Bell said. “The recycled content produced in this facility, combined with Shaw’s patent-pending BCF manufacturing process, will allow us to significantly enhance/expand our Clear Touch BCF family of products. This venture will contribute toward the company’s 25% energy intensity reduction pledge announced in 2008 (FCNews, July 7/14), as the use of recycled PET containers employs less energy compared to the production of virgin materials.”

In commenting on how much will be turned into flooring fiber by Shaw, Long said, “The answer is the majority of it. CPR will substantially augment Shaw’s total PET requirements. The first phase of 160 million pounds will utilize almost three billion bottles and will produce several hundred million square feet of carpet. That figure is variable due to a number of factors including the weight of the carpet. At full capacity these figures increase substantially to about five billion bottles processed.

“Again,” he added, “at full capacity we would consume a very significant percentage of available bottles today. The broad expectation is that the number of available bottles will grow over the next few years.”

Shaw uses RPET product in other areas of its business as well, most notably in its EcoLogix commercial carpet cushion system, a technology it introduced in 2003 that contains 88% post consumer recycled content.

As announced in January, noted Long, all ClearTouch styles currently contain recycled content. “We are currently sourcing this material from a third-party. Starting in the first quarter of 2010, the recycled content will be primarily sourced from the joint venture.”

The JV will reduce the use of landfills and improve internal process economics for Shaw and DAK, Bell concluded. “By recycling 280 million pounds of PET bottles, over one million cubic yards per year of landfill space will be conserved. The energy savings related to the Clear Path 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.” About 100 jobs will be created at the facility at the completion of both phases.

For more information, call 800.441.7429.