Recycling company Visy has reportedly told two council contractors it will no longer accept recyclable material from February 9.
In a letter reportedly seen by News Corp, Visy invoked “force majeure”, otherwise known as unforeseen circumstances to suspend contracts, citing the China waste ban and collapse of the recycling materials market.
In a statement to News Corp, Environment Minister Lily D’Ambriosio said the state government would look into the problem.
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“I have asked for a meeting with these businesses to seek an explanation into what’s happened and will be discussing these matters with local government,” she said.
“I will be seeking assurances from all relevant parties to ensure this will have no impact on Victorians.”
Warrnambool based company Wheelie Waste was informed of the move on January 24. Other councils may be affected, but reports indicate this has not been confirmed yet.
Polytrade and SKM Recycling is reportedly negotiating with councils and contractors to find a solution over the next 10 days.
Citywide, owned by the City of Melbourne, told the publication its contract with Visy would remain.