An Australian-first plastics recycling factory is set to be built at Ettamogah, resulting in 30 jobs when completed.
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The $50 million plant operated by the Melbourne-based Pro-Pac Packaging Group will use technology to create a finer resin than previously formed in Australia.
It will focus on recycling the plastic wraps found on pallets of supermarket goods and the film used to encase silage on farms.
Up to 15,000 tonnes of soft plastic waste is anticipated to be processed each year.
Pro-Pac group chief executive and managing director John Cerini said the factory tied in with federal government goals to increase the re-use of plastics.
As a result it has benefited from a $13.9 million grant from the Department of Industry, Science and Resources.
"This project is the next step in Pro-Pac's commitment to playing a leading role in the circular economy and being a steward of the products it produces," Mr Cerini said.
"We know Albury City Council shares our view that there is a real imperative to drive packaging sustainability, and we look forward to working with the team over the coming years."
Albury mayor Kylie King welcomed Pro-Pac opting to build the plant in her area, after the company cited the city's location and council welcome as key reasons for choosing to set up at the Nexus industrial estate.
"We're really pleased that they've considered Albury City a good partner to do business with, to explore operations with and to set up operations in our region," Cr King said.
"The fact there are job opportunities involved is a good news story as well and it goes to show that innovation in manufacturing and finding solutions in regional areas can happen and it's a wonderful seed."
The factory will be next door to the $45 million Circular Plastics Australia plant which opened in March 2022 and recycles PET plastic found in products such as drink bottles.
The common link between Circular Plastics Australia and Pro-Pac Packaging Group is former Carlton Football Club board member Raphael Geminder who is a major shareholder with both companies.
The billionaire founded the multinational Pact Group in 2002 and it is involved in packaging, recycling and reusing.
It is hoped the Pro-Pac Ettamogah factory will be operating by April 2025.
A development application has been lodged with Albury Council and the company wants to start construction before the end of winter.
It would be Pro-Pac's second recycling site, having opened a plant in Mildura in 2010.
It turns soft plastics into bollards, park benches, railway sleepers and noise walls.
However, the key difference will be the higher level of technology used to produce a finer level of resin at 15 microns compared to other thicker outcomes of 50-plus microns.
That means fine plastics such as silage film and pallet wrap will be able to be made at Ettamogah.