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August 16, 2021

Pact Group and partners plan to build PET recycling facility in Australia

The plant will process the equivalent of more than one billion bottles a year.

Pact Group, Cleanaway, Asahi Beverages and Coca-Cola Europacific Partners (CCEP) have partnered to develop a polyethylene terephthalate (PET) recycling facility in Australia.

The industry partners have signed a memorandum of understanding (MOU) to create a joint venture to build the proposed plant.

The recycling facility will process raw plastic materials collected through Container Deposit Schemes and kerbside recycling.

It will feature advanced sorting, washing, decontamination and extrusion technology and have the capacity to process around one billion bottles a year.

The plant will manufacture more than 20,000t of new recycled PET bottles and food packaging.

Pact will run the facility once it is operational and provide technical and packaging expertise, while Cleanaway will provide available PET through its collection and sorting network.

Asahi Beverages, CCEP and Pact will purchase the recycled PET from the facility to use in their respective products.

Pact Group CEO and managing director Sanjay Dayal said: “We are delighted to be able to bring a scaled cross-industry solution that [addresses] the local production of recycled resin.

“We are proud to have CCEP, Asahi Beverages and Cleanaway as partners creating a local circular economy.”

Cleanaway chief operating officer Brendan Gill said: “This PET plastic pelletising facility is a huge win for the environment by creating a high value, recycled raw material from plastics we collect and sort through our network.

“At Cleanaway, our mission is to make a sustainable future possible and we see waste as a resource to achieve that.”

The facility’s location is expected to be decided in the coming months, with construction due to be completed by 2023.

All arrangements are subject to the finalisation of legally binding documents between the parties.

The four companies are currently building another PET recycling facility in Albury-Wodonga, Australia, through Circular Plastics Australia (PET).

In February, Pact Group acquired New Zealand-based fresh food packaging company Flight Plastics for an undisclosed sum.

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