Reaction of poly(ethylene terephthalate) waste (PETW) powder with ethylene glycol (EG) using 0.003 mol lead acetate as a catalyst was carried out in a batch reactor at 470 K under atmospheric pressure. Reactions were undertaken with various particle sizes ranging from 50 to 512.5 mum and reaction times ranging from 10 to 60 min at 10-min intervals. A low molecular weight product of PETW was obtained using this reaction. Then hydrazine monohydrate, chlorobenzene, and cyclohexylamine (CHA) were introduced to convert the low molecular weight product of PETW into terephthalohydrazide (TPHD). To increase the PETW conversion rate, an external catalyst (lead acetate) was introduced during the reaction. The reaction product was deposited onto the surface of unreacted PETW that was removed from the surface by introducing dimethyl sulfoxide. To accelerate the reaction rate CHA was introduced during the second stage of reaction, which has industrial significance. Depolymerization of PETW was proportional to the reaction time and inversely proportional to the particle size of PETW. Analyses of value-added products (TPHD and EG) as well as PETW were undertaken. A kinetic model was developed and experimental data were simulated consistent with the model. A thermodynamic study was undertaken because this is required during the transfer of laboratory data through the pilot plant for commercialization. (C) 2003 Wiley Periodicals, Inc.