Resource Recycling
  • The Latest
  • Podcast
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Data centers and AI combine to create ITAD ‘growth engine’

    Component shortages drive demand for data center hardware

    Ingram Micro again files to take company public

    Ingram Micro sees lifecycle services rise 35%

    Inside the Circle: Will we lose our shirts over CA textile EPR?

    Inside the Circle: Will we lose our shirts over CA textile EPR?

    Rhode Island bill would make brands pay for recycling

    Midterms put e-scrap legislation in focus

    Google supports right-to-repair policy in Oregon

    Alphabet’s AI spending, processor sales broaden ITAD outlook

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Nov. 2

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Podcast
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Data centers and AI combine to create ITAD ‘growth engine’

    Component shortages drive demand for data center hardware

    Ingram Micro again files to take company public

    Ingram Micro sees lifecycle services rise 35%

    Inside the Circle: Will we lose our shirts over CA textile EPR?

    Inside the Circle: Will we lose our shirts over CA textile EPR?

    Rhode Island bill would make brands pay for recycling

    Midterms put e-scrap legislation in focus

    Google supports right-to-repair policy in Oregon

    Alphabet’s AI spending, processor sales broaden ITAD outlook

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Nov. 2

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Carpet producers to end voluntary recycling subsidies

byJared Paben
May 5, 2020
in Recycling
The carpet recycling industry is already facing pressures from low plastics prices, a shift in polymers used in carpet and collection challenges from the coronavirus. | ND700/Shutterstock

Carpet manufacturers are halting their nationwide voluntary subsidy program for carpet recycling, which could push some struggling processors out of business.

The Carpet and Rug Institute (CRI) announced last week it will end the Carpet America Recovery Effort (CARE) Voluntary Product Stewardship program at the end of June. Through the program, the industry pays about $4 million a year in subsidies to companies that collect and ship post-consumer carpet to end markets.

One of the largest subsidy recipients, if not the largest, is DC Foam Recycle, a post-consumer carpet collection company owned by Wellman Advanced Materials. DC Foam Recycle’s 12 facilities supply carpet – mostly nylon 6,6 with a smaller amount of nylon 6 – to Wellman, which recycles the plastic into pellets for use in automotive and other applications.

“We’re anticipating a pretty big loss,” said Louis Renbaum, president of DC Foam Recycle. “If we were not part of Wellman, we’d be out of business, for sure.”

Smaller collectors that are far away from the southeastern U.S., which is where recovered carpet end users are clustered, may not survive, he said in an interview.

The carpet recycling industry has already been under significant market pressure, both from low virgin plastic prices and from carpet manufacturers gradually replacing nylons in carpet face fiber with lower-cost PET. More recently, they’ve been dealing with a collapse in carpet collections caused by the coronavirus.

CRI cites market pressures

Nationally, the Voluntary Product Stewardship (VPS) program supports the recycling of tens of millions of pounds of carpet each year. During the third quarter of 2019, the most recent period for which data is available, the program paid over $500,000 to nearly three dozen companies to subsidize the diversion of 30 million pounds of carpet. Over three-quarters of that material went to reuse and recycling markets, and the remainder went into energy recovery. The carpet stream includes nylon 6, nylon 6,6, PET, PP and other materials.

The VPS program subsidizes carpet recycling companies outside of California, which has the nation’s only mandatory extended producer responsibility (EPR) program for carpet. The program is funded by fees consumers pay when they buy new carpet.

CARE, manager of the California carpet recycling plan, recently announced it would boost subsidies to California processors, because they are struggling with difficult plastics markets and collection challenges caused by the coronavirus.

In his statement announcing the end of the VPS program, CRI President Joe Yarbrough cited the significant economic impacts brought on by COVID-19 as driving the decision. He described it as “a necessary and prudent step we must take in the short-term.”

VPS, which originally launched in 2014 as a one-year incentive program, was extended a number of times. In all, it paid out $15.5 million to recyclers over 4.5 years.

“CRI and its members greatly value the critical role that sorters and recyclers play in making carpet recycling possible and appreciate the challenges these business owners are also facing during these unprecedented times,” Yarbrough stated. “Earlier this month, VPS paid a one-time bonus to program participants based upon their average monthly payout over the past 12 months as we all prepared for the unknown impacts of COVID-19.”

A blow for recycling companies

Product stewardship advocates criticized the decision to end the voluntary subsidy program.

“Carpet and Rug Institute should be ashamed for announcing the end of the product stewardship program nationally on the 50th Anniversary of #EarthDay,” the National Stewardship Action Council wrote in a Facebook post.

The carpet industry has used the VPS program as a strategy to head-off passage of mandatory EPR in other states. Carpet processors participating in the VPS program – or any that received payments from program in the past 18 months – are prohibited from supporting EPR-type laws or regulations.

In a Floor Daily article, Rachel Palopoli, co-owner of carpet collection company Planet Recycling, said she predicted collectors outside of California will go out of business.

Renbaum of DC Foam Recycle said loss of subsidies will particularly hurt collectors farther from end users in Georgia and South Carolina. Those in the Midwest, for example, pay roughly double what collectors in the southeast pay to ship carpet to those end users.

Handling about 20-25 million pounds of carpet annually, DC Foam Recycle alone receives roughly one-quarter of the VPS subsidies, Renbaum estimated. The recycling subsidy is 2 cents per pound for nylon and PP carpet. For a full 40,000 pound load of carpet, CARE’s subsidy paid about $800, which is a significant help in a low-margin business, Renbaum said.

Wellman already pays DC Foam Recycle as much as it can for feedstock, but Wellman is under cost pressures, Renbaum said. Post-industrial plastic is extremely cheap, and in many cases, Wellman buys post-consumer carpet from DC Foam Recycle at a loss, he said.

If Wellman can’t make up the difference, then DC Foam Recycle will have to absorb the loss of the VPS subsidy. He suggested his company may have to re-evaluate renewing its lease for its Chicago facility.

Renbaum said the timing of the subsidy loss is particularly bad. His company was already losing money during the first three months of the year, he said, and now it continues to deal with the fallout from the coronavirus. In the fall and winter months, it will experience seasonally slow carpet collections.

“It just adds insult to injury when you look at the fact that it’s coming at an extremely horrible time,” Renbaum said. “That’s not to say the mills aren’t having a hard time now, too. But it’s their product we’re dealing with.”

A version of this story appeared in Plastics Recycling Update on April 29.
 

2020 Recycling and Composting Equipment Buyers' Guide

Tags: Industry GroupsPlastics
TweetShare
Jared Paben

Jared Paben

Related Posts

New CAA chief talks markets, industry support

New CAA chief talks markets, industry support

byAntoinette Smith
November 4, 2026

Interim CEO Jeff Meyers outlined the producer responsibility organization's strategy for navigating state EPR rollouts, building recycling markets and supporting...

Advocate calls for action to curb ‘AI tsunami’

byPaul Lane
October 29, 2026

A Google circular economy lead says hyperscalers are working to reduce the impact of e-scrap coming from data centers, but...

E-Scrap Conference honors industry leaders

E-Scrap Conference honors industry leaders

byPaul Lane
October 28, 2026

The three-day event wrapped up with an award ceremony recognizing those who work to improve the e-scrap industry.

Auto parts group joins Colorado EPR suit

Auto parts group joins Colorado EPR suit

byStefanie Valentic
October 26, 2026

The Auto Care Association says the state requires auto parts sellers to pay both CAA and Interchange 360 for the...

Flexibles play vital role in medical supply chain

Flexibles play vital role in medical supply chain

byDan Felton, president and CEO, Flexible Packaging Association
October 26, 2026

The resilience and sustainability flexible packaging can provide in the healthcare supply chain are often overlooked.

Court gavel and justice scales on a table.

NAW asks to pause Oregon EPR fees

byStefanie Valentic
October 20, 2026

NAW is asking a federal court to pause Oregon’s packaging EPR law for its members until the Ninth Circuit rules,...

Load More
Next Post

West Coast study: Recycling zeal doesn't erase contamination

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

NexPoint Materials to shutter Alabama plastics plant

NexPoint Materials to shutter Alabama plastics plant

November 4, 2026
Blancco acquired by tech-focused investors

ITAD investors pursue capacity, services

October 30, 2026
New CAA chief talks markets, industry support

New CAA chief talks markets, industry support

November 4, 2026
The missing link in e-plastic recycling

The missing link in e-plastic recycling

October 28, 2026
Inside the Circle: Will we lose our shirts over CA textile EPR?

Inside the Circle: Will we lose our shirts over CA textile EPR?

November 9, 2026
PureCycle sees easing headwinds to R-PP adoption

PureCycle shifts focus, secures feedstock

November 5, 2026

LYB looks to EU for chem recycling growth

November 2, 2026
Google supports right-to-repair policy in Oregon

Alphabet’s AI spending, processor sales broaden ITAD outlook

November 5, 2026
Partnership targets mixed nylon waste

Partnership targets mixed nylon waste

November 4, 2026
DOE reinstates $375m Eastman recycling grant

DOE reinstates $375m Eastman recycling grant

October 30, 2026
Load More

About & Publications

About Us

Staff
Job Listings

Archive

Magazines

Work With Us

Advertise
Contact
Terms and Privacy

Newsletters

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Podcast
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazines – Old
  • About Us
  • Advertise
  • Archive
  • Job Listings
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.