Woolworths Group and Pact are collaborating to form a new circular packaging partnership that could result in the usage of up to 18,000 tonnes of recycled plastic annually in Woolworths’ own brand packaging.
In FY22, the Woolworths Group already eliminated more than 5,800 tonnes of virgin (newly made) single-use plastic and packaging from its own brand range as part of its commitment to eliminating plastic from packaging wherever it can.
The proposed partnership will see Pact use recycled plastic to make more sustainable packaging for products across Woolworths’ product range, including in milk bottles, meat trays and beverage bottles, drawing on plastic collected from household recycling and container deposit schemes.
Pact currently runs five plastic recycling facilities in Australia, including the recently opened PET recycling plant in Albury-Wodonga, which has the capacity to recycle up to 1 billion PET beverage bottles annually. The company has plans to build another four facilities by 2025.
Woolworths Group Managing Director of Format & Network Development, Rob McCartney said the agreement between Woolworths Group and Pact will represent a multimillion-dollar investment in regional manufacturing and recycling capabilities.
“As Australia’s largest retailer we have a responsibility to make the products our customers put in their shopping baskets better for the environment,” he stated.
“We’re working hard to remove plastic from packaging like our bakery trays, however it can be necessary to protect quality and food safety in some products – which is why replacing it with recycled plastic is the next best thing.
“Across the scale of our range, the real challenge is sourcing quality recycled material in the volumes we need and ensuring it’s coming from within Australia to support the development of our local circular economy and avoid shipping emissions.
“We’re working with Pact on a partnership that would propel us closer towards our sustainable packaging goal than we’ve ever been before, while also helping to grow the Australian recycling industry to meet demand in the years to come.”
Pact Group CEO and Managing Director, Sanjay Dayal added: “We know that consumers and businesses are increasingly demanding recycled and recyclable plastic packaging and Pact is working with committed partners like Woolworths Group to drive that change.
“Plastic packaging that is designed effectively, that is recyclable and recycled properly in Australia can be used again and again, creating a truly local circular economy for plastics.”
Pact is also investing $76 million to install new technology and equipment across its packaging manufacturing facilities as it continues to grow local capacity to support increased use of recycled plastic in Australian packaging.
The investment is supported by a $20 million grant from the Australian Government through the Modern Manufacturing Initiative.
