Company scraps plans for $1.1B plastics recycling plant in central Pa.

Editor’s note: This story was updated to include comment from project opponents.

NORTHUMBERLAND — Plans have been scrapped for a $1.1 billion facility, adjacent to the North Branch of the Susuqheanna River in Northumberland County, that would convert used plastic materials into feedstock for new products.

Encina Development Group in a news release Thursday said it will pursue projects currently under review or development in the U.S., Saudi Arabia and Southeast Asia.

Save Our Susquehanna, a group of local citizens concerned about the health and environmental impacts of a plastics processing facility, posted on its website in large letters: “Our Community Won.”

“This project threatened the region’s clean air and water and would have harmed our way of life in the area, especially for the people who live next to the proposed facility,” said Save Our Susquehanna spokesperson Sandy Field.

“This is a huge win for the residents of Northumberland County, for the six million people who use the Susquehanna for drinking water and all Pennsylvanians who have a constitutional right to clear air,” said Alex Bromstein, executive director of Clear Air Council.

But Sam Schiccatano, county commissioners chairman, cited the loss of tax revenue and jobs the plant would have brought.

“It’s disappointing,” he said.

The decision was “neither enlightening or surprising,” said Robert Garrett, president and CEO of the Greater Susquehanna Valley Chamber of Commerce.

“My understanding was Encina was having problems with regulatory bodies from the township up to the federal government,” he said.

Northumberland Borough Council recently went on record as opposing the project, citing potential risks of toxic emissions.

Last October Encina withdrew its application for a National Pollutant Discharge Elimination System (NPDES) permit after receiving from the state Department of Environmental Protection a second technical deficiency letter.

Michael Marr, director of government relations and compliance for Encina, claimed at the time in a project of this size it is not uncommon to withdraw and resubmit applications in the permitting process.

Encina announced in 2022 it would build a state-of-the art facility on a 105-acre, industrially zoned, rail-served site along Route 11 in Point Twp., 7 miles outside Northumberland toward Danville.

The Point Township Circular Manufacturing Facility was expected to create 300 jobs with an average annual salary of $75,000, according to the company.

The facility was to use proven technologies to process 450,000 tons of recycled plastic materials annually that otherwise would go to landfills or incinerators, it said.

There were mixed reactions in the community to the proposed plant. Yard signs for and against were visible. The opposition was “informed, engaged and passionate,” Garret said.

In announcing the decision not to move forward in Northumberland County, Encina CEO Dave Roesser cited the projects elsewhere.

Company research shows those projects offer Encina opportunities to meet the needs of its customers at the scale they are expecting, he said.

“The demand for these products required that our company reevaluate our engineering design to meet these larger end-product goals for our customers,” Roesser said.

“Ultimately, our facilities must meet these increased demands, therefore, after careful consideration and thorough analysis, Encina’s management team has decided not to proceed with the construction of our circular manufacturing facility in Point Twp., Pennsylvania, but will move forward in our other customer markets.”

He added: “While we were excited about the many attractive opportunities for expansion and growth in Point Twp., we have determined that our current strategic objectives and long-term goals will be better met through this decision.”