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JV Established to Build Largest PET Recycling Project in North America

DAK Americas, LLC and Shaw Industries Group, Inc. announced the creation of a joint-venture company, Clear Path Recycling, LLC, that will produce Recycle PET 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 use the RPET material as a feed stock to enhance the value and sustainability of their offerings.

DAK Americas, comprised of four business units – PET, polyesters staple fibers, monomers/ingredients, and specialty polymers, is wholly owned by Alfa S.A.B. de C.V., based in Mexico. The company claims that it is the second largest PET resin producer in the Americas.

Clear Path Recycling, LLC plans to build a facility in Fayetteville, N.C., to recycle more than 280 million pounds a year of PET bottles. The RPET 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. The second phase is expected to be complete roughly 18 months after the first phase is completed.

The new facility will be located at DAK’s Cedar Creek facility. DAK currently operates a PET resin manufacturing facility at the location, and has significant infrastructure in place for the new facility.

"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 CEO 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 two companies worked in conjunction with the North Carolina Department of Commerce, as well as Cumberland County on the project. State 3J Job and Investment Credits, Recycling Incentives, and Local Incentives were significant factors in the site selection.