A new recycling plant in Albury/Wodonga will substantially increase the amount of recycled PET plastic produced in Australia each year from local waste.

Circular Plastics Australia (PET, a joint venture by Pact Group Holdings Ltd, Cleanaway Waste Management Ltd and Asahi Beverages), will deliver the $45 million facility, which will create dozens of direct jobs when construction starts in coming months.

It is anticipated the facility will recycle the equivalent of around one billion 600ml PET plastic bottles each year. The bottles will be used as a raw material to produce new bottles, plus food and beverage packaging in Australia, to help close the loop on recycling. This will see the amount of locally-sourced and recycled PET produced in Australia increase by two thirds – from around 30,000 tonnes currently to over 50,000 tonnes per annum according to Pact Group.

Other major environmental benefits it will deliver include reducing Australia’s reliance on virgin plastic, the amount of plastic waste sent overseas and the amount of recycled plastic Australia imports. Solar energy will power part of the facility.

The facility will be one of the first businesses located at the Nexus Precinct, a new industrial precinct north of Albury/Wodonga’s CBD in NSW.

Over the course of the build, the project is expected to create over 300 direct and indirect jobs, with tradespeople, engineers and technicians among the roles that need to be filled.

Construction will start towards the end of the year, pending approval from Albury Council, and is expected to be fully operational by December 2021.

Cleanaway will provide the plastic to be recycled through its collection and sorting network, Pact will provide technical and packaging expertise, while Asahi Beverages and Pact will buy the recycled plastic from the facility to use in their packaging.

The project was supported with nearly $5 million from The Environmental Trust as part of the NSW Government’s Waste Less, Recycle More initiative funded from the waste levy. The project was also made possible through the support of the Department of Regional NSW.

Brooke Donnelly, CEO of the Australian Packaging Covenant Organisation, says the partnership highlights the powerful impact of collaboration. “By bringing together key roles within the plastic packaging supply chain, the partnership will ensure more PET plastic is collected, recycled and used again in future packaging – all the while reducing the strain on virgin materials and boosting a local economy with more jobs and greater opportunities.

“This industry-led, decisive leadership is fundamental to ensuring the successful delivery of Australia’s 2025 National Packaging Targets.”