Polyesters such as polyethylene terephthalate are widely used in textile fibers, films, and packaging of food and beverages. Originally driven by environmental reasons, recycling of postconsumer polyester bottles into textile fibers is now becoming commercially attractive. We studied the chemical recycling wherein part of the virgin raw-materials during preparation of polyester was replaced by washed post consumer polyester. During the process, the postconsumer polyester undergoes partial de-polymerization before repolymerization. Role of reactor-agitator configuration in achieving the solid-slurry and solid-melt mixing, and in depolymerization, was studied. Finally, suitability of the polymer for melt spinning and drawing of polymer into yarn was examined. (C) 2011 Wiley Periodicals, Inc. J Appl Polym Sci 123: 520-525, 2012