Pact Group announces $500M investment in plastics recovery

Pact Group, one of Australia’s largest rigid plastic product manufacturers, will invest $500 million into plastics recovery infrastructure, research and technology over the next five years.

Pact Group Non-Executive Chairman Raphael Geminder made the pledge at the first National Plastics Summit at Parliament House this week, following news the company plan to develop a plastic pelletising facility with Cleanaway and Asahi.

According to Mr Geminder, the company will partner with government and industry to invest in new facilities for sustainable packaging, reuse and recycling initiatives.

“Our stated vision is to include 30 per cent recycled content across our product portfolio by 2025. Across our business, this would be the equivalent of keeping nearly two billion plastic containers out of landfill,” Mr Geminder said.

“Just as importantly, we will be creating jobs for Australians in the circular economy – a new and growing sector where we believe Australia can lead the world.”

Environment Minister Sussan Ley said the commitment was encouraging, with industry leadership to reduce plastic waste, increase recycling and create jobs a critical outcome of the summit.

“Pact’s announcement at the National Plastics Summit follows announcements from major brands McDonald’s and Nestlé, with McDonald’s committing to phase out plastic cutlery by the end of 2020, removing 585 tonnes of plastic waste per annum,” Ms Ley said.

“This adds to McDonald’s previous commitment to phase out 500 million straws every year and takes the total annual plastic reduction to 860 tonnes.”

Furthermore, Nestlé will partner with waste management company IQ Renew on a soft plastics collection trial, to be tested at 100,000 homes.

“The recycling economy starts here, this is where we take what are now seen as problems and turn them into assets that create remanufactured products, which create jobs and which grow our economy,” Ms Ley said.

Additional commitments include $650,000 from PepsiCo to support Greening the Green, a program aimed at educating consumers on soft plastics, and Unilever announcing it will halve its use of virgin plastic in production and packaging by 2025.

The Australian Packaging Covenant Organisation announced it would lead the development of the ANZPAC Plastic Pact, a new program within the Ellen MacArthur Foundation’s Global Plastics Pact Network.

“ANZPAC will provide the significant intervention required to meet Australia’s national plastic packaging target – that 70 per cent of all plastic packaging will be recycled or composted by 2025,” Ms Ley said.

According to Assistant Waste Reduction Minister Trevor Evans, the summit was an important step in working with industry to drive long-term practical outcomes, such as increasing Australia’s recycling rates and domestic reprocessing capabilities.

“We are looking towards fundamentally changing the way we think about and manage our waste, and creating new markets for recycled products,” he said.

“This transformation towards a circular economy will both create jobs and help our environment.”

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iQ Renew merges with Stop Waste for chemical recycling

Licella Holdings (Licella), pioneers in chemical recycling, has completed the merger of its subsidiary iQ Renew Pty Ltd (iQR) with Stop Waste, owner and operator of recycling facilities in Australia.

iQR will be one of the first companies globally to combine physical and chemical recycling, at a time when the world is searching for new recycling pathways following China’s effective ban on imported foreign waste.

In CY2018, Stop Waste made earnings before tax, interest, depreciation and amortisation of approximately $9 million and totals 60 people (employees and contractors). Through the merger, Licella have a pathway to earn up to 32 per cent of the iQR business. As part of the overall transaction share swap, Stop Waste Holdings, owners of Stop Waste, have also made an investment into Licella.

iQR now owns and operates the portfolio of Material Recovery Facilities and secondary processing facilities on the NSW Central Coast, an hour north of Sydney, Australia. These facilities include two for primary recycling (sorting), and two for secondary recycling (processing single streams for re-manufacture).

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Combined, iQR’s facilities process over 100,000 tonnes per annum of recovered resources, collected kerbside by councils.

iQR plan to fund and build a commercial scale Cat-HTR plant in the next 18 months, which will process end-of-life plastics and tyres in Australia and New Zealand.

Licella and iQR’s new global joint venture, iQ Renew Wood Recycling, also offers an opportunity to extract value from construction and demolition (C&D) wood waste.

As part of the partnership, Danial Gallagher, founder of Stop Waste, has been appointed CEO of iQR, and will also join the Licella board as a non-executive director.

“I am an absolute believer in the Cat-HTR technology and this was a key driver in the decision to merge Stop Waste with iQ Renew,” Mr Gallagher said.

“We continue to expand our recycling business into exciting new areas, including construction and demolition wood waste, driving innovation, maximising value and minimising waste in resource recovery.”

Licella CEO Dr Len Humphreys said he was pleased to have completed such a significant transaction.

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