ASX-listed Pact Group has won $20 million in federal government funding towards a $76 million upgrade of 15 sustainable-plastic packaging plants across four states.
Pact Group says the upgrades will help it expand its capability to meet the growing demand for sustainable packaging, and help FMCG companies comply with the government’s 2025 National Packaging Targets. Those will require 100 per cent of packaging to be reusable, recyclable or compostable, with 20 per cent average recycled content included in plastic packaging.
The funds have come from the Federal Government’s Modern Manufacturing Initiative for Recycling and Clean Energy Manufacturing projects. The upgrade of the plants – located in NSW, Victoria, Queensland and WA – are scheduled for completion by mid-2024.
Pact Group CEO Sanjay Dayal said the new technology and equipment will enable Pact to manufacture higher-quality recycled packaging products to support its customers meet demands for a higher quantity of locally recycled content in their packaging products.
“This is a substantial investment in Australia’s local plastic recycling and manufacturing industry. Pact is committed to building a local circular economy and we are proud of our progress to date,” he said.
The upgrades will add to Pact’s investments in Australian recycling infrastructure, including a new PET recycling facility in Albury, which will be operational next month, an HDPE recycling facility in Melbourne, a further PET recycling facility at a location yet to be identified, and several other projects that are under evaluation.
Pact Group employs more than 6000 people at 110 sites across 15 countries. The company recycles more than 30,000 tonnes of plastic a year which is converted into 100-per-cent recycled milk, shampoo and personal care bottles. It has also replaced more than 150 million single-use boxes with 5 million reusable plastic crates and reuses 1.2 million garment hangers every day.
