The established Close the Loop take-back scheme for used HP Indigo consumables in Australia and New Zealand is being trialled in China, and if successful will be implemented in multiple Asian countries.
The trial comes as Close the Loop Group (CLG) says it achieved better than expected first quarter figures, acquired South Africa's largest pouchmaking business, and settled its acquisition of Alliance Paper.
The China take-back trial is an extension of the HP take-back programme that CLG's Close the Loop business runs in Australia and New Zealand. It will leverage the company’s supply chain knowledge in reverse logistics to collect products from HP channel partners in China and ship them to Israel – where HP produces Indigo presses – for remanufacturing.
The trial will leverage broader CLG expertise by using sea freight knowledge and processes from its O F Pack division. The company says it aims to assist HP Indigo customers to create a circular economy solution, by transforming their linear supply chains into circular economy ones, and enable the reuse of their products in the market.
Joe Foster, group chief executive officer at CLG, said, “We are thrilled to be extending our existing take back programme to HP Indigo in China. The trial not only leverages our supply chain knowledge, but also O F Pack expertise in sea freight processes to deliver a group-wide solution.”
COMPANY UPDATE
Meanwhile, Close the Loop Group (CLG) has paid R8,000,000 (A$701,000) plus stock on hand, less an amount equal to what is owed to trade creditors for The Pouch Shop, a niche provider of ready-to-label packaging and pouches for food products in South Africa. CLG is paying half up-front and the other half in two years’ time, with funding coming from cash out of CLG’s South African division, Foster International Packaging, and bank debt.
The Pouch Shop is the largest stockist of off the shelf readymade pouches in Southern Africa, and was majority owned by Joe Foster. It was due to be incorporated in the original CLG IPO, however, due to Covid travel restrictions all due diligence on site was not able to be performed last year.
The Pouch Shop product range of recyclable flat bottom and stand-up pouches caters to small-volume fast-to-market customer needs. CLG says the range and customer base will complement the South Africa-based Foster International Packaging’s offer. The two South African businesses currently share warehouse and manufacturing facilities, as well as back-end office and logistics processes.
CLG has settled the acquisition of leading chemical free thermal paper supplier and sustainable paper products group, Alliance Paper. Originally announced in late July, it will allow CLG to develop new sustainable paper products that it says can replace some traditional plastic packaging, based on technologies that Alliance has developed and has been trialled successfully by CLG’s O F Flexo business. Alliance has also developed sustainable paper products such as recyclable coffee cups, disposable and recyclable Eskys.
The “better-than-expected” first quarter figures from Close the Loop Group will be revealed at the company’s AGM on 16 November.
