Pact Group and Cleanaway are creating a new $38 million plastic recycling facility in Laverton, Victoria.
The facility will become Australia’s largest post-consumer polyethylene recycling plant, converting locally collected kerbside materials into high quality food grade, rHDPE and rPP resin.
This will facilitate the inclusion of locally pressed recycled resin into food, dairy and other packaging, enabling brand owners and retailers to deliver on their sustainability objectives.
More than 20,000 tonnes or the equivalent of over 500,000 plastic milk bottles and food tubs will be collected and processed from household recycling bins into food grade resins.
Australia is falling behind when it comes to local, onshore processing capacity to manage reprocessing of waste collected through kerbside collections.
Many brand owners have committed to reduce their reliance on virgin plastic by 2025.
The business will trade as Circular Plastics Australia (PE).
Positive direction for sustainability
“This new facility will massively increase Victoria’s capacity to recycle plastics,” says Victorian Minister for Energy, Environment and Climate Change Lily D’Ambrosio.
“It will mean more plastic material will be given a second life as a new food grade packaging such as turning a milk bottle back into a milk bottle.”
Adding to the conversation, Pact’s Managing Director and CEO, Sanjay Dayal says: “This new recycling facility highlights the progress we are making in expanding our reuse and recycling capability, a core component of our growth strategy.
“We look forward to working with many more brand owners and retailers to help them achieve their 2025 APCO targets.”
Cleanaway’s Chief Operating Officer Brendan Gill adds: “The opportunities presented by the circular economy are endless. This 20,000-tonne plastic pelletising facility is a huge win for the environment by creating a high value, recycled raw material from plastics we collect and sort through our network.
“This will provide our Melbourne councils and commercial customers with a great outcome for their recycling initiatives and contributes to the development of a domestic circular economy.”
Construction of the plant is set to start towards the end of the year, and it’s expected to be fully operational by December 2022.