The latest MoU will allow the parties to work together to provide an industry model for recycling solutions in Australia
Pact Group has entered into a memorandum of understanding (MoU) with Cleanaway, Asahi Beverages and Coca-Cola Europacific Partners (CCEP) to build a new PET recycling facility in Australia.
Under the deal, the companies will establish a joint venture (JV) to construct and operate new PET recycling facility.
The latest MoU will allow the parties to work together to provide an industry model for recycling solutions in Australia.
It will consist of the new facility and the PET recycling facility currently being developed by Pact Group, Cleanaway and Asahi Beverages via Circular Plastics Australia (PET) in Albury-Wodonga, which is expected to be completed by the end of this year.
Pact Group CEO and managing director Sanjay Dayal said: “We are proud to have CCEP, Asahi Beverages and Cleanaway as partners creating a local circular economy. This partnership shows the value of a solution that works for industry and consumers.
“This is completely aligned to Pact’s strategy which is to lead the local circular economy through reuse, recycling, and packaging solutions.”
The proposed facility, which will help accelerate recycling operations in Australia, will enable to process raw plastic material collected through container deposit schemes and kerbside recycling.
It is expected to hold the potential to process the equivalent of up to one billion bottles per annum to produce more than 20,000 tonnes of new recycled PET bottles and food packaging.
The new recycling facility will use advanced sorting, washing, decontamination and extrusion technology.
The cross-industry solution is said to combine the complementary expertise of each participant to boost their individual sustainability goals, said Pact Group.
Cleanaway will offer available PET via its collection and sorting network, while Pact will deliver technical and packaging expertise.
Upon full operation, the new recycling facility will be managed by Pact Group. CCEP, Asahi Beverages and Pact will purchase the recycled PET from the facility to use in their respective products.
Pact stated that a decision on the plant’s location is expected in the coming months and construction is anticipated to be completed by 2023.