The Erie Regional Chamber and Growth Partnership (ERCGP) has been notified of the International Recycling Group (IRG) will cancel its $300 million Erie plastics recycling facility. According to IRG, the Erie facility cannot move forward due to financial uncertainty caused by federal funding cuts. The project was previously slated to receive a $192 million EPA loan to complete the project.
“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,” said Erie Regional Chamber and Growth Partnership CEO Brandon Mendoza, “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.
“As always, we remain committed to advocating for sustainable investment and working to attract new business opportunities, but the opportunity cost to develop such an enormous project with all pieces aligned to end like this is a disappointing outcome.” said Mendoza.
The recycling plant project was supported via local and state-level investments, including investment from local key businesses. There is a strong commitment to innovative and bring sustainable industries in Erie.
IRG cited the uncertainty of their Department of Energy federal loan of $192 million, the impact and economic uncertainty of tariffs, and private investment holding onto cash until the landscape becomes more stable. The federal funding freeze on grants from early 2025, though now rescinded, placed uncertainty in the marketplace for vital economic projects both in Erie and across the country going forward.
IRG received $5 million in Redevelopment Capitol Assistance Program (RCAP) from the state that was dedicated to IRG. The ERCGP will be reaching out to the Governor’s Office to talk about keeping that investment in Erie for other projects. The ERCGP is also in contact with local legislators regarding the project.
