Victoria's Plastic Recycling Capacity Boosted by $4 Million Investment
Victoria's efforts to tackle plastic waste are set to receive a significant boost, thanks to a $4 million government and industry investment. This initiative aims to transform the way hard-to-recycle plastics, including soft plastics, are managed, diverting them from landfills and into new products.
The investment will fund four innovative projects, each designed to enhance the resource recovery sector's capabilities and resilience. By increasing plastics recycling by 16,700 tonnes annually, these projects will not only boost recycling capacity but also create jobs within the Victorian circular economy.
Here's a breakdown of the projects receiving funding:
- Pact Recycling (Cheltenham): The bagMUSTER project will focus on recycling bags used for transporting seeds, fertilizers, pesticides, and stockfeed, addressing a specific waste stream.
- APR (Dandenong): An upgrade to their sorting capacity will utilize an advanced infrared process from Norway, improving the recycling of end-of-life soft plastics and enhancing overall recycling capability.
- Australian Soft Plastics Recycling (Pakenham): Upgrading their facilities will enable the efficient recycling of low-density polyethylene films, such as pallet wrap collected from supermarket warehouses, by increasing processing capacity and material quality.
- RE4ORM (Barnawartha): This facility upgrade will enable the recovery of low-density plastics, ensuring they can be reused in the manufacturing of new recycled products.
The government's $3.5 million investment is a significant contribution, with $1.75 million coming from both the Victorian and Federal Governments through the Recycling Modernisation Fund (RMF).
The RMF is a crucial initiative supporting states and territories in enhancing Australia's capacity to sort, process, and remanufacture waste glass, plastic, tyres, paper, and cardboard. This one-time boost is expected to have a substantial impact on the country's waste management landscape.
Federal Minister for the Environment and Water, Murray Watt, emphasized the importance of this investment, stating that it marks a significant step in Australia's journey towards better plastic waste management. He highlighted the complex nature of plastic waste and the real progress made by building recycling capability in Victoria.
"By keeping plastic out of landfills and putting it to productive use, these projects demonstrate the Recycling Modernisation Fund's effectiveness," Watt said. The Federal Government's commitment to the RMF is substantial, investing over $200 million in new and upgraded recycling infrastructure, contributing to a total investment of $1 billion with states, territories, and industry.
In Victoria alone, the RMF is supporting 27 projects with a joint funding of $79 million, including $44.7 million from the Federal Government and $34.3 million from the Victorian Government. These projects are expected to add a significant 328,000 tonnes of recycling capacity annually and attract $226.5 million in recycling infrastructure investments.
Victorian Minister for Environment, Steve Dimopoulos, expressed optimism about the projects' impact, stating that they will strengthen Victoria's ability to manage plastic waste, ensuring more materials are recovered, reused, and kept in productive circulation.
Looking ahead, Round 6 of the Recycling Modernisation Fund will open in January 2026, offering an additional $4 million in joint funding to further build capacity and divert waste from landfills. Applications will be accepted until July 2026 or until funding is fully allocated.
For those interested in learning more, the following articles provide additional insights: 'Urgent government action needed to protect Australia’s plastic packaging recycling future' and 'APR Plastics to open soft plastics recycling facility in Victoria'.
