Australian Company Pact Group Gets Grant Of $3 million For Recyclable Food Packaging Plant

The Australian Government invests $3 million in developing recyclable food waste packaging plants to address the pollution challenge.

Recyclable Food Packaging


The Australian government has granted $3 million to a company looking to develop New Zealand’s first-ever 100% recycled food packaging plant!

The bold commitment from the country’s Ministry of the environment’s waste minimisation fund. The firm receiving the funds is an Australian-based Pact Group. The fund consists of between $10 & $15 million a year but this grant is by far the biggest to be awarded this year.

This first round of funding will enable the company to develop new plants that process only 100% recycled food packaging. They will also add this to their existing site in Auckland. Think plastic meat trays that you find in supermarkets as well as other rigid packaging containers

Pact Group already has about 110 operational sites in over 15 countries. Mostly in Australasia and South East Asia. Their workforce is about 6000 strong and they remain the largest manufacturer of rigid plastic packaging in Australasia.

Eugenie Sage, the New Zealand Environment Minister said the funds would enable the processing of waste packaging materials that are usually discarded into forms that can be recycled and used locally. This is instead of it being packed into a cargo ship and dumped in Asia!

I do not think it is a coincidence that this move comes just in time following China’s announcement that their National Sword Initiative comes into full effect. National Sword aims to drastically reduce the amount of waste landed on China’s shores by simply not allowing it.

This will inevitably drastically change the way the west in general processes its waste. More in-country in solutions like this one will inevitably be introduced in the coming years. The plastic pollution challenge is demanding serious ‘on shore’ infrastructure investments across the world. This however requires serious capital investment.

Interestingly the $3 million sum only covers about half of the cost of a new plant. PACT Group is covering the rest.

New Grant From the Government
As part of its commitment to a greener future, the Federal Government recently announced an impressive $190 million investment in Australia’s waste and recycling industry. Together with contributions from state governments and additional investments from the industry, this $190 million investment could potentially grow to a staggering $425 million.

What’s even more exciting is that all this money isn’t just being used for one-off projects. It will also play a much bigger role in supporting smarter waste practices, increased circular economy activities, improved national waste data, and more focus on outcomes. All of this points to a brighter future for the economy and the environment. So, let’s cheer for the Minister of the Environment Susan Ley MP, and Assistant Minister Trevor Evans MP who made this amazing opportunity possible.

Recycling Modernisation Fund
Pact MD and Group CEO Sanjay Dayal were thrilled to join the Ministers this morning in announcing the Recycling Modernisation Fund. Speaking at the event, he highlighted the potential benefit of bringing government and industry stakeholders together to advance Australia’s domestic recycling industry. Not only can this open up significant economic opportunities and create jobs, but it can also take us further toward a circular economy.

In the circular economy, resources are shared sustainably and intelligently. This is something that Pact has been actively advocating since February when it announced its commitment to investing $500M into local recycling initiatives.

With these public-private partnerships enabled by this announcement, Pact is one step closer to making circular solutions a reality in Australia. It is eager to continue working with both state and Federal Government as well as other industry stakeholders to do its part in creating much-needed infrastructure for an environmentally friendly future.

Pact’s Plans for the Fund and its Investment
Pact Group, an Australian manufacturing giant, recently made headlines. It announced its commitment to invest 500 million dollars into sustainable manufacturing and a circular economy over the next five years.

A goal of this investment is to use 30% recycled material in all its packaging. The plan eliminates non-recyclable packaging and increases reusable secondary packaging in supermarkets.

But that’s not all. The manufacturing giant also revealed plans to invest 50 million dollars into upgrading its manufacturing platform to include recycled content in food and industrial packaging. Additionally, they’ve made more exciting announcements by advertising their intention of investing another 20 million into building two recycling plants.

While this will mean an increase in operating costs for them, it’s no miracle that Pact has been praised for its commitment to making a difference to our planet. This announcement marks Pact’s determination to rethink production options and promote sustainability.

Finally, the potential for better environmental outcomes for Australia makes this a thrilling time! Ultimately, these measures help further cement Pact as an industry leader and reinforce its commitment to eco-conscious operations.

It’s safe to say that Pact’s ambitious set of goals has left us with anticipation over what could be achieved within the next five years. Here’s hoping they make some great progress towards greener production methods as a result. There is much potential here for creating positive change through corporate action.

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