Pact will provide technical and packaging expertise for the new facility while Cleanaway will provide feedstock through its collection and sorting network
New joint venture to close the loop on plastic packaging recycling in Australia. (Credit: Asahi Beverages)
Australian speciality packaging solutions provider Pact, Cleanaway Waste Management, and Asahi Beverages have signed a memorandum of understanding to jointly develop a local plastic pelletising facility in Albury/Wodonga, New South Wales.
The new plastic pelletising facility, which will contribute to a circular economy, will have a capacity to process up to 28,000 tonnes of plastic bottles and other recyclables into flake and food-grade pellets.
The resulting pellets will be used as raw materials for the production of packaging for food and beverage industries.
For the project, Pact will provide technical and packaging expertise while Cleanaway will be responsible for providing feedstock through its collection and sorting network.
Asahi Beverages and Pact to use recycled pellets for packaging products
Most of the recycled pellets produced at the facility will be purchased by Asahi Beverages and Pact for use in their packaging products.
Pact managing director and CEO Sanjay Dayal said: “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.”
Expected to create approximately 30 jobs in the region, the new facility will service markets across the East Coast. It is scheduled to be commissioned by December 2021.
Cleanaway secured financing from the Environmental Trust as part of the NSW Government’s Waste Less, Recycle More initiative funded from the waste levy, in support of the new project.
Cleanaway CEO and managing director Vik Bansal said: “The partnership will create valuable raw materials from the recyclables we collect and sort to help make a sustainable future possible.”
Asahi Beverage Group CEO 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.”
Earlier this month, Asahi Soft Drinks selected KHS’s InnoPET Blomax Series V stretch blow moulder for sustainable production of its Rokko water brand.