DLL has provided Circular Plastics Australia (PE) a $23.5 million funding line to purchase sorting, washing and extruding (melting and forming) equipment for its mixed plastics recycling plant in Laverton, Australia.
Circular Plastics Australia (PE) is a joint venture partnership between Pact Group and Cleanaway Waste Management. The $38 million facility will span 25,000 meters squared (approximately six acres). It will recycle more than 20,000 tonnes (approximately half a billion) plastic milk bottles and food tubs collected from household recycling bins in the state of Victoria every year.
Cleanaway will provide the plastic waste through its collection and sorting network and Pact Group will provide technical knowledge and operate the plant. The recycled resin produced by the facility will be used by Pact Group to manufacture high-quality food packaging for Australian consumer goods businesses.
The goal is to support Australian businesses with meeting the 2025 National Packaging Targets: 100 percent of packaging is reusable, recyclable or compostable; 70 percent of plastic packaging goes on to be recycled or composted; and on average, 50 percent of the packaging is recycled content (20 percent for plastic packaging).
“At DLL, we say that we’re ‘partnering for a better world.’ Our financial partnership with Circular Plastics Australia is a perfect example of that,” says Kent Kavanagh, DLL Business Development Manager who led the financing agreement. “We’re also grateful for our relationship with Rabobank — we collaborated with them to create this asset financing solution. All around, this partnership with Circular Plastics Australia shows how financing can power the circular economy and be part of meaningful, sustainable change.”
Julia Wain, Group Treasurer, Pact Group, said DLL made the financing process simple and seamless.
“We’re dealing with multi-million-dollar equipment. We needed a financing strategy that was easy to manage and understand,” Wain explained. "Plain and simple — DLL delivered. We’re excited about the partnership.”
Plant construction is underway and set to be completed in early 2023.