New joint venture to close the loop on plastic bottles

An exciting cross value chain collaboration which uniquely combines the expertise of each participant to create a genuine circular economy for plastic bottles

Partnerships - Resource Recovery

February 19, 2020

Highlights

The facility is anticipated to process up to 28,000 tonnes or the equivalent of approximately 900 million plastic bottles into flake and food grade pellets.

Highlights

The facility is anticipated to process up to 28,000 tonnes or the equivalent of approximately 900 million plastic bottles into flake and food grade pellets.

Today Cleanaway announced the signing of a Memorandum of Understanding with Pact Group Holdings Ltd (Pact) and Asahi Beverages Pty Ltd (Asahi Beverages) to jointly develop a local plastic pelletising facility. The facility is anticipated to process up to 28,000 tonnes or the equivalent of approximately 900 million plastic bottles into flake and food grade pellets which will be used as a raw material for the production of packaging for food and beverages.

This is an exciting cross value chain collaboration which uniquely combines the expertise of each participant to create a genuine circular economy for plastic bottles. Cleanaway will provide available feedstock through its collection and sorting network. Pact will provide technical and packaging expertise and Asahi Beverages and Pact will buy the majority of the recycled pellets from the facility to use in their packaging products.

The proposed facility will be located in Albury/Wodonga to service markets across the East Coast and create approximately 30 local jobs in regional Australia. It is anticipated that the facility will be operational by December 2021.

Cleanaway’s CEO and Managing Director, Mr Vik Bansal, said “The partnership will create valuable raw materials from the recyclables we collect and sort to help make a sustainable future possible. It is a natural extension of our value chain and expands our footprint of prized assets.”

Commenting on the proposed arrangement, Pact’s Managing Director and CEO, Mr Sanjay Dayal, said “I am thrilled with this arrangement and the opportunity to work with Cleanaway and Asahi in making a meaningful step in improving the plastics value chain.  The arrangement is clearly aligned with our Vision to lead the circular economy and will support Pact in achieving our 2025 Sustainability Promise to offer 30% recycled content across our packaging portfolio.”

This project was supported by a grant to Cleanaway from the Environmental Trust as part of the NSW Government’s Waste Less, Recycle More initiative funded from the waste levy.

Asahi Beverage’s Group CEO, Mr Robert Iervasi, said “This venture will allow us to utilise Australian sourced recycled plastic resins to assist in meeting our sustainability commitment to transition our portfolio to recycled plastics. I am excited by the opportunity to participate in a market winning strategic alliance that closes the loop of the circular economy and contributes to a sustainable plastics supply chain by combining our strategic capabilities.”

Read more about our Footprint 2025 roadmap to ensure Australia has the right infrastructure in place to meet growing waste needs while continuing to improve resource recovery.

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