NSW Investment Revamps Hard-to-Recycle Plastics

Dept of Climate Change, Energy, Environment & Water

Senator The Hon Murray Watt, Minister for the Environment and Water

The Hon Penny Sharpe MLC, NSW Minister for Climate Change and the Environment


More than 17,000 tonnes of hard-to-recycle plastics, including soft plastic packaging, will soon be diverted from landfills in regional New South Wales every year and transformed into valuable materials for local manufacturing.

Two new regional projects, funded by the Australian and New South Wales governments together with industry, will tackle plastic waste, drive Australia's transition to a circular economy and boost jobs.

iQRenew has been awarded $9.1 million for an infrastructure upgrade at their Kundle Kundle plant on the Mid North Coast of New South Wales. The upgrade will help repurpose 10,000 tonnes of household-sourced soft plastic packaging per year. The project includes upgrading an existing sorting line and the installation of a new processing line, allowing the site to produce resin suitable for use in various packaging applications as well as remanufacturing it into a diverse range of products. These include fence posts, bricks, erosion control systems, concrete formwork, durable furniture, commercial and residential bins, buckets, pails, shopping baskets and more. The project will support up to 10 ongoing jobs and up to 15 construction jobs.

Tamworth Regional Council's Plastics Recycling Facility has also been awarded $1.9 million. Together with 11 surrounding local government areas and industry partners, Tamworth Regional Council will tackle difficult-to-handle plastics with a new recycling facility. It will process 7,000 tonnes per year of hard-to-recycle waste plastic such as crates and pallets to be remanufactured into new plastic products. This project will support 8 ongoing jobs and 20 construction jobs.

The $11.2 million government investment includes $5.6 million from the New South Wales Government's Waste Less Recycle More initiative and $5.6 million from the Australian Government's Recycling Modernisation Fund.

The Australian Government is investing over $200 million in new and upgraded recycling infrastructure through the Recycling Modernisation Fund, contributing towards $1 billion of investment with states, territories and industry.

In addition to these two projects, a further 38 projects in New South Wales have been awarded funding with a $43.1 million joint investment from the Australian and New South Wales Governments. The projects are expected to add more than 175,000 tonnes of recycling capacity each year and see $112.9 million invested in recycling infrastructure in the state.

Quotes attributable to Federal Minister for the Environment and Water, Murray Watt:

"Australia's transition to a circular economy is well underway, and this new infrastructure in New South Wales marks another important step in transforming how we manage plastic waste.

"Plastics remain a complex waste challenge. By building recycling capability with our state and territory partners, we're making real progress in recovering materials that would otherwise go to landfill.

"The Albanese Government is partnering with states and territories to meet our commitment to doubling circularity by 2035. These projects are a great example of the Recycling Modernisation Fund in action, supporting onshore solutions that keep plastic out of landfill and circulating in the Australian economy.

"These projects don't just protect the environment; they also build local jobs and industries of the future. That's what our circular economy is delivering: smarter waste solutions for long term environmental and economic benefits. We're tackling this on the international stage too, as we work hard to agree a global treaty that addresses plastic pollution with measures across the full lifecycle of plastics."

Quotes attributable to NSW Minister for Climate Change and the Environment, Penny Sharpe:

"Without action, Greater Sydney is on track to run out of landfill space by 2030. This means finding smarter ways to manage waste is not optional, it's essential.

"By turning plastics that were once destined for landfill into valuable materials, we're not only easing pressure on our waste systems but creating jobs and supporting regional economies.

"The NSW Government is taking decisive action to tackle plastic waste and investing in infrastructure that provides a long-term solution to highly complex waste streams like soft plastics."

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