A collaboration among Pact Group, Cleanaway Waste Management and Asahi Beverages will see the development of a local plastic pelletising facility in northern Victoria, aiming to close the loop and contribute to a circular economy.
The three companies signed a Memorandum of Understanding (MoU) to jointly develop the facility, which is expected to process up to 28,000 tonnes of plastic bottles and other recyclables into flake and food grade pellets. The raw material will then be used to produce packaging for food and beverages.
Asahi and Pact will buy the majority of the recycled pellets from the facility for packaging products, with Pact providing technical and packaging expertise, while Cleanaway will provide available feedstock through its collection and sorting network.
“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,” said Asahi Beverages group CEO Robert Iervasi.
“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.”
Pact CEO and managing director Sanjay Dayal said he was “thrilled with this arrangement and the opportunity to work with Cleanaway and Asahi in making a meaningful step in improving the plastics value chain,” as well as being part of leading the circular economy.
Cleanaway CEO and managing director Vik Bansal said the facility was a natural extension of the company’s value chain, expanding the footprint of prized assets.
“The partnership will create valuable raw materials from the recyclables we collect and sort to help make a sustainable future possible,” said Bansal.
The new facility will be located in Albury or Wodonga region to service the East Coast, and is expected to create around 30 local jobs in regional Australia. The site aims to be operational by 2021.
In August, the Australian Food and Grocery Council (AFGC) told Food & Drink Business that food and grocery processing in northern Victoria was the second largest contributor in terms of output, and the eighth largest employer across the four federal electorates of Mallee, Bendigo, Nicholls and Indi, which includes Wodonga. The region generates $9.23 billion a year and employs 14,221 people.
