• Source: REDcycle
    Source: REDcycle
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More than 43,000 tonnes of soft plastics will be diverted from Victorian landfills every year, thanks to a $15.6 million investment in advanced and innovative recycling technology by the federal and state governments.

Three projects, delivered in partnership with the Victorian Government, have been announced under the new Recycling Modernisation Fund Plastics Technology stream, as governments work together on solutions for hard to recycle plastics, including soft plastics.

Pro-Pac Group in Reservoir received more than $6 million to expand its existing facility for transforming recycled feedstock into soft plastic with recycled content. It will produce up to 11,000 tonnes of Australian soft plastic packaging each year with 30 per cent recycled content. The project will deliver 14 direct jobs.

Naula in Altona received more than $5 million for advanced sorting and processing of up to 32,000 tonnes of soft and mixed plastics products per year, to refine them to produce new plastics such as food-grade packaging. This will help Australia to develop an advanced recycling supply chain that will turn post-consumer soft plastic waste back into food and other packaging. The project will deliver 61 direct jobs.

Sustainable Plastic Solutions received more than $4 million to install recycling technology to process an additional 8000 tonnes per year of agricultural plastics such as films, grain tarp and baling twine into high quality resins for remanufacturing back into original products. The project will deliver 25 direct jobs.

The $60 million Recycling Modernisation Fund Plastics Technology stream funds solutions that increase Australia’s recycling and recovery rates for hard to recycle plastics, enables collection schemes to be scaled up over time, and helps drive Australia’s transition to a safe circular economy.

The first project under this stream was announced in July – a $20 million investment in a recycling facility in Kilburn, South Australia to clean and purify soft plastics such as shopping bags, chip packets and food wrappers.

The Recycling Modernisation Fund is a national initiative expanding Australia’s capacity to sort, process and remanufacture glass, plastic, tyres, paper and cardboard. When combined with co-investment from all states and industry, the Recycling Modernisation Fund will give a $1 billion boost to Australian recycling.

Nationally, the federal government is increasing recycling capacity in Australia by more than a million tonnes every year while creating over 3000 jobs, including over 525 in Victoria.

The Australian Government is also supporting soft plastics recycling by improving packaging design through new national packaging laws. These laws will require packaging to be designed to be recovered, reused, recycled and reprocessed safely in line with circular economy principles.

Packaging News

As 2025 draws to a close, it is clear the packaging sector has undergone one of its most consequential years in over a decade. Consolidation at the top, restructuring in the middle, and bold innovation at the edges have reshaped the industry’s horizons. At the same time, regulators, brand owners and recyclers have inched closer to a new circular operating model, even as policy clarity remains elusive.

Pact has reported a decline in revenue and earnings for the first five months of FY26, citing subdued market demand, as chair Raphael Geminder pursues settlement of the long-running TIC earn-out dispute.

PKN brings you the top 20 clicks on our website this year, a healthy mix of surprise and no-surprise. Pro-Pac Packaging led the list, Women in Packaging came in at #4, and Zipform's paper bottle at #15.