The Australian Government has announced a significant investment of A$15.6 million (approximately $10.5 million) to enhance soft plastics recycling in Victoria. This strategic initiative is expected to divert more than 43,000 tonnes of soft plastics from Victorian landfills each year, marking a substantial advancement in the country’s efforts to address plastic waste and promote sustainability.

A Collaborative Effort for a Greener Future

This investment is part of the newly established Recycling Modernisation Fund Plastics Technology stream, a collaborative initiative between the Australian Government and the Victorian Government. The fund is designed to tackle the recycling of hard-to-process plastics, which have historically posed significant challenges due to their complex composition and limited recyclability. By focusing on soft plastics—such as packaging films, agricultural plastics, and other materials—this initiative aims to significantly reduce the volume of plastic waste that ends up in landfills.

Pro-Pac Group: Expanding Capacity and Creating Jobs

One of the primary beneficiaries of this investment is Pro-Pac Group, a leading Australian packaging company. The company will receive more than A$6 million to expand its facility’s capacity to transform recycled feedstock into soft plastic with 30% recycled content. This expansion will enable Pro-Pac Group to produce up to 11,000 tonnes of Australian soft plastic packaging each year. Not only will this increase the availability of recycled content in plastic packaging, but it will also contribute to job creation, with 14 direct jobs expected to be generated by this project.

The recycled materials processed by Pro-Pac Group will be refined for new plastics production, including food-grade packaging. This is a crucial development, as food-grade plastics require stringent quality standards to ensure safety and durability. By integrating recycled content into these products, Pro-Pac Group is setting a new benchmark for sustainable packaging solutions in Australia.

Sustainable Plastic Solutions: Innovating Agricultural Plastic Recycling

Another significant recipient of the fund is Sustainable Plastic Solutions, which has been allocated more than A$4 million to enhance its recycling technology. This investment will enable the company to process an additional 8,000 tonnes of agricultural plastics annually. These materials, including films, grain tarps, and baling twine, are often difficult to recycle due to their heavy contamination and complex composition.

Through this initiative, Sustainable Plastic Solutions will convert these agricultural plastics into high-quality resins, which can be remanufactured into new products. This project is expected to create 25 direct jobs, further contributing to the economic benefits of the recycling sector.

Environmental and Economic Impact

The investment in soft plastics recycling technology is expected to have far-reaching impacts on both the environment and the economy. By diverting tens of thousands of tonnes of plastic waste from landfills each year, the initiative will significantly reduce the environmental footprint of plastic products in Victoria. Moreover, the creation of new recycling infrastructure will support the development of a circular economy, where materials are continuously reused and repurposed, minimizing waste and conserving resources.

Australian Environment and Water Minister Tanya Plibersek highlighted the multifaceted benefits of the investment, stating, “This funding is supporting new recycling infrastructure, helping to solve challenges with plastic waste and stop soft plastics from going to landfill, while supporting innovation and delivering jobs. It’s great to see state governments committed to getting soft plastics out of landfill and working with industry to see a circular economy for soft plastics in Australia. This is great for the environment, but it’s also great for the economy and jobs growth.”

A National Initiative with Long-Term Benefits

The A$60 million Recycling Modernisation Fund Plastics Technology stream is part of a broader national effort to boost Australia’s recycling and recovery rates for challenging plastics. The fund aims to scale up collection schemes, enhance recycling infrastructure, and facilitate the transition to a circular economy. The first project under this stream involved a A$20 million investment in a South Australian recycling facility dedicated to processing soft plastics.

When combined with co-investment from state governments and industry partners, the Recycling Modernisation Fund is set to contribute an impressive A$1 billion to the enhancement of Australia’s recycling capacity. This initiative is projected to increase the nation’s recycling capacity by more than one million tonnes per year, creating over 3,000 jobs nationwide, including more than 525 jobs in Victoria alone.