Australia constructs country’s largest PET recycling plant in major recycled resin boost

11 Feb 2021 --- Australia is constructing its largest PET recycling plant in Albury-Wodonga as part of a joint venture between Asahi Beverages, Pact Group and Cleanaway Waste Management.

Last week, the county’s environment minister Sussan Ley turned the first sod on-site where the plant will be erected.

The US$45 million plant – in the Nexus Precinct of Australia – is set to be fully operational by October and is currently being excavated.

The facility will trade as Circular Plastics Australia PET and produce the equivalent of one billion 600 ml PET bottles annually.

The plant will also be used to produce over 20,000 tons of new recycled PET (rPET) bottles and food packaging. Solar energy will power part of the facility.

According to Pact Group, this will increase the amount of rPET produced in Australia by two-thirds – from around 30,000 to over 50,000 metric tons each year.

Driving Australia’s circularity goals
Pact Group is the largest manufacturer of rigid plastics in Australia and has a growing presence throughout Asia. The company’s involvement in the project aims to contribute to national environmental sustainability targets.

“The project is integral to ensuring the successful delivery of Australia’s 2025 National Packaging Targets,” says Ley.An estimated 67 million tons of plastic is wasted each year in Australia.

“It will create local jobs during construction and permanent jobs when it begins operations.”

In 2018, the Australian government agreed on “ambitious” goals of making 100 percent of packaging in the country recyclable, compostable or reusable.

Pact Group says the plant will also reduce the nation’s reliance on virgin plastic and reduce its reliance on rPET imports.

Cross-sector financing
The project is made possible by the assistance of government and environmental bodies and private sector stakeholders.

Almost US$5 million was granted by the Environmental Trust as part of the New South Wales (NSW) Government’s Waste Less, Recycle More initiative.

This initiative funds various programs to provide efficient recycling infrastructure, prevent illegal dumping and educate household and industrial consumers on how to raise standards.

Also contributing is the Department of Regional NSW and the Australian Government’s Recycling Modernisation Fund.

Asahi Beverages’ Group CEO, Robert Iervasi, says, “Along with our beverage manufacturing plant in Albury, the new plant is part of our long-term commitment to the region.”

Asahi Beverages currently generates US$1.3 billion in sales in the country annually.

Industry demand for recycling
Pact Group’s managing director and CEO, Sanjay Dayal, says the site is being built to meet rising industry demand for better recycling infrastructure and availability.

“The state-of-the-art facility will reimagine domestic manufacturing and recycling in Australia,” he says.

“This project would not have been possible without increased demand for locally-processed recycled content from forward-thinking Australian companies who are keen to meet Australia’s 2025 National Packaging Targets.”

“We know Australians’ attitudes to recycling are shifting, with a recent poll from research company Quantum showed three-quarters of Australians wanted more locally recycled content in their packaging.”

Industry collaboration is critical to being able to build a local circular economy, he asserts.

In August, the Australian government committed $190 million (US$134 million) to a new Recycling Modernisation Fund (RMF) that will generate $600 million (US$428 million) of recycling investment and drive a billion-dollar transformation of Australia’s waste and recycling capacity.

Edited

By Louis Gore-Langton

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