International Recycling Group Cancels Plastic Recycling Project in Erie
Group cites federal funding uncertainty, looming tariffs, and waning sustainability pledges
International Recycling Group Erie, Inc. (IRG) announced Thursday, Apr. 3 that the group is canceling its long-awaited and often controversial plans to develop a plastics recycling plant in Erie, Pennsylvania.
Citing monetary uncertainty due, in part, to the freeze on federal funding commitments issued by the U.S. Department of Energy's Loan Programs Office as well as proposed tariffs on material and equipment – the group states that project development costs would, as a result of these uncertainties, be higher than anticipated. Additionally, the group cites a fear that the supply/demand for recycling will be diminished due to the deprioritizing of sustainability pledges.
"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.
In a press release from IRG, the group states that any materials already collected for recycling at IRG will be contained, and that "if a recycling buyer cannot be found, the material will be sent to landfill."
In a subsequent press release from the Erie Chamber and Growth Partnership (ERCGP), CEO Brandon Mendoza stated, "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. 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The federal funding freeze on grants from early 2025, though now rescinded, fostered uncertainty in the overall marketplace both in Erie and nationwide.
According to the ERCGP, IRG received $5 million from the Redevelopment Capitol Assistance Program (RCAP), which is state funding that was dedicated specifically to IRG. The press release stated, "The ERCGP will be reaching out to the Governor's Office to talk about keeping that investment in Erie for other projects."
What will happen to the former Hammermill property remains to be seen. The release from IRG states, "No government funding was used in the development of the project with the exception of an approximately $300,000 loan from the Erie County Redevelopment Authority as partial payment for the company's site at 1565 East Lake Rd. This loan is secured by a lien on the property and is expected to be repaid in full. Commonwealth grants that had been offered to IRG under the Redevelopment Assistance Capital Program and Rail Assistance Program were never accessed." The release also states that no further comment from IRG will be made at this time.
Erin Phillips can be reached at erin@eriereader.com
