Pact Group and Cleanaway are to develop a new plastic recycling facility in Laverton, Victoria.
Trading as Circular Plastics Australia (PE), the facility will become the country’s largest post-consumer polyethylene recycling plant, converting processed recycled plastics into packaging for food, dairy, and other products.
In addition, the recycling facility will process more than 20 thousand tonnes of plastic into food-grade resins a year – equivalent to about 500,000 containers.
The collaboration of Pact and Cleanway complements the existing PET (polyethylene terephthalate) joint venture between Pact, Asahi, and Cleanaway by constructing a recycling facility in Albury later this year.
Subject to a series of export bans, the new Laverton facility will increase the country’s local processing capacity for recycled plastics.
Cleanaway will provide the recycled plastic through its collection and sorting network, while Pact will provide technical knowledge, operate the plant, and purchase the product from the facility to use on their packaging, with the balance sold to third parties.
“This new recycling facility highlights the progress we are making in expanding our reuse and recycling capability, a core component of our growth strategy,” said Sanjay Dayal, CEO and MD at Pact. “We look forward to working with many more brand owners and retailers to help them achieve their 2025 APCO targets”.
The Victorian Government supports this project through its Recycling Victoria Infrastructure Fund and the Australian Government through its Recycling Modernisation Fund.
According to both companies, plant construction will begin at the end of this year and is targeted to be fully operational by December next year.