Pact Group, Cleanaway Waste Management and Asahi Beverages plan to develop a plastic pelletising facility in a collaborative effort to contribute to a circular economy.
Announced on February 19, the companies have signed a Memorandum of Understanding (MoU) to jointly develop a local plastic pelletising facility located in Albury/Wodonga.
The aim is to be able to process up to 28,000 tonnes of plastic bottles and other recyclables into flake and food grade pellets, which will be used as a raw material for the production of packaging for food and beverages.
Cleanaway will provide available feedstock through its collection and sorting network. Pact will provide technical and packaging expertise; and Asahi Beverages and Pact will buy the majority of the recycled pellets from the facility to use in their packaging products.
Cleanaway’s CEO and managing director Vik Bansal said the partnership will create valuable raw materials from the recyclables to help make a sustainable future possible.
“It is a natural extension of our value chain and expands our footprint of prized assets,” Bansal said.
Pact managing director and CEO Sanjay Dayal said the collaboration is making a meaningful step in improving the plastics value chain.
“The arrangement is clearly aligned with our vision to lead the circular economy and will support Pact in achieving our 2025 Sustainability Promise to offer 30 per cent recycled content across our packaging portfolio,” Dayal said.
Asahi Beverage CEO Robert Iervasi said the venture will allow Asahi to use Australian sourced recycled plastic resins to assist in meeting its sustainability commitment to transition our portfolio to recycled plastics.
The facility, anticipated to be operational by December 2021, would service markets across the East Coast and create about 30 local jobs in regional Australia.