The launch of a $45 million PET recycling plant in Albury-Wodonga will increase the amount of locally sourced and recycled PET by two thirds, with roughly one billion PET beverage bottles being recycled every year. The project is the work of Circular Plastics Australia, a JV between beverage competitors Asahi Beverages and Coca-Cola Europacific Partners (CCEP), Pact Group, and Cleanaway Waste Management.
The plant will produce recycled raw material to produce new beverage bottles, as well as other food and beverage packaging, contributing to closing the loop on recycling in Australia.
Cleanaway will provide the plastic to be recycled through its collection and sorting network, Pact will operate the facility and provide technical and packaging expertise, while Asahi Beverages, CCEP and Pact will buy the recycled plastic from the facility to use in their packaging.
The JV was announced in February 2020, officially launched that August and construction began in February last year. The build supported around 225 jobs and its operation will create 40 jobs for its 24/7 operations.
For Pact managing director and CEO Sanjay Dayal, the facility is a “game changer” for Australia’s plastic recycling industry.
At the plant opening Dayal said, “This state-of-the-art recycling facility had its genesis just two years ago … born from a recognition that industry could work together to create a sustainable plastics supply chain that can benefit our respective businesses and contribute to protecting the environment.”
“Each of my partners have their own sustainability commitments and I am personally really pleased by how all of us have collaborated to make this project an integral part of meeting our respective goals.”
Dayal said the plant would “turbo charge” Pact Group’s target to eliminate all non-recyclable packaging it produces and include at least 30 per cent recycled content across its packaging portfolio by 2025.
While competitors in the beverage market, Asahi Beverages and CCEP have shown what can be achieved through collaboration.
Asahi Beverages’ Group CEO Robert Iervasi said the recycling plant was a testament to the sustainability commitment of each organisation involved.
“It can’t be underestimated how significant this project will be – we are providing an industry-wide solution that will benefit all Australians. Asahi Beverages already has a large beverage manufacturing plant in Albury, and we are excited to expand our presence, helping create more local jobs,” Iervasi said.
Nearly all of Asahi’s 450ml and 600ml soft drink bottles are already made with recycled PET, but its goal is to have transitioned all bottles to 100 per cent recycled or eco-friendly materials by 2030.
“Our consumers told us they wanted more recycled bottles, and together we have worked out a way to do that that will make a real impact,” Iervasi said.
CCEP joined the JV last year in a move that built upon its existing environmental commitments. Its target is to have established a closed loop by 2030, meaning for every bottle or can sold, a bottle or can will be collected and recycled. Currently, seven out of 10 CCEP drink bottles are made from recycled plastic and 100 per cent of the primary packaging used for its drinks is recyclable.
CCEP vice president and general manager Australia, Pacific and Indonesia Peter West said it was a proud moment in the company’s corporate history.
“CCEP is committed to playing a leading role in Australia’s circular economy. With our partners, we are working towards creating a closed loop for our bottles where they are used, collected, and given another life.
“This plant, and the future Victorian plant, will complete this loop, help to solve the national rPET shortage, and create new jobs for Australian workers,” West said.
Apart from the sustainability benefits, the creation of jobs in a regional centre is also celebrated. In the last week, National Farmers Federation president Fiona Simson unveiled a proposal calling on the federal government to back a $1.4bn strategy to develop 20 Regional Development Precincts that would encourage businesses and industry out of metropolitan centres.
Of course, none of this would be possible without Cleanaway collecting, sorting, and supplying the plastics.
When the build began, Cleanaway’s then CEO and managing director Vic Bansal (Mark Schubert became CEO on 30 August 2021) said the company’s Footprint 2025 strategy had reached a point where the company was providing the right infrastructure for resource recovery and also extending the value chain to ensure materials are optimised for recycling into new products.
At the plant’s opening, Cleanaway CFO Paul Binfield said the facility brought the circular economy on-shore, creating the opportunity for everyone to recycle their bottles and buy beverages in recycled packaging.
“With our partners, Cleanaway is working on a network of plastics recycling facilities integrated with our leading collection and sorting infrastructure to provide our customers with the most sustainable and circular solution for their plastic recycling,” Binfield said.
The plant was officially opened today by Federal Minister for the Environment Sussan Ley, NSW Minister for Environment and Heritage James Griffin, and the Mayor of Albury City Kylie King.
The project was supported with about $5 million from the New South Wales Government’s Waste Less, Recycle More initiative, and support of the federal government’s Recycling Modernisation Fund.
Griffin said, “Through our $337 million Waste Less, Recycle More inititiative, the New South Wales Government contributed $4.8 million to this facility, and another $495,000 for specialised equipment inside the plant.
“This investment is helping us achieve our target of tripling plastics recycling in New South Wales by 2030, and transitioning to a circular economy.”
Ley said the JV showed how the supply chain and government can work together to achieve national packaging targets.
As operations got underway, Dayal extended his thanks to all involved in bringing the facility to life during the challenging conditions presented by Covid.
“I would like to thank everyone… especially the amazing Pact Group project team who worked tirelessly to complete it on budget and ahead of schedule,” he said.
Dayal also gave special mention to Pact Group chair Ruffy Geminder for playing a pivotal role in driving the project and bringing the partners together.
“His passion for recycling and commitment to a more sustainable future is without question,” Dayal said.
Construction of a second facility of similar scale is scheduled to start in April. Located in Melbourne’s west, the $50 million plant will open in 2023.
