Following significant organic growth in Australia, US secondary packaging manufacturer PakTech is establishing an on-the-ground-presence in Australia, with a contract manufacturing facility in Victoria and proprietary partnership with Visy.
PakTech made known its intention to enter the Australian market this week. In the US market, the company is a leading manufacturer of 100 per cent recycled and recyclable secondary packaging, and embraces a circular economy model.
PakTech handles for multipacks are made from 100 per cent recycled high density polyethylene (HDPE), a Type 2 polyethylene thermoplastic. The company says since it started using 100 per cent recycled material, almost one billion milk jugs have been recycled, 120 million pounds of plastics saved from landfills and oceans, and almost 50 acres of land saved from landfill waste by repurposing recycled containers into PakTech products.
At the new contract manufacturing facility PakTech is setting up in Victoria, scheduled to be operational by later this year, and through its proprietary partnership with Visy, PakTech will have the capacity to manufacture 100 million recycled injection moulded packaging handles for cans, bottles and other containers, annually within Australia. Through this, PakTech says it will be able to tap burgeoning demand and fulfill its vision: “made in Australia, recycled in Australia, and repurposed again into new PakTech products in Australia”.
Brandon Rogers, PakTech CEO explained the partnership with Visy to PKN: “It’s a contract manufacturing arrangement, through which Visy will recycle the materials and then use our proprietary process and technology to make PakTech products to PakTech specification. Visy is a great partner, and we’re delighted to be working with them to bring the PakTech product, PakTech technology and PakTech vision to Australia.”
Locally, PakTech’s existing customers include Hawkers Brewery, Billson’s of Beechworth and The Apple Press. Its launch in Australia comes as public demand for sustainable packaging and practices skyrockets. In the US, PakTech counts brewers such as pFriem Brewing, Independence Brewing Co, Sycamore Brewing and CPG (Consumer Packaged Goods) companies like Pepsi, KraftHeinz and Johnson & Johnson as customers, and has seen continued strong growth for sustainable multipack products.
Commenting on PakTech’s arrival in Australia, CEO Brandon Rogers said: “Conscious consumerism is flourishing, and pressure from consumers around the world is forcing brands and retailers to rethink their approach to sustainable packaging. Sustainability and the circular economy is no longer a competitive differentiator, it’s an expectation.
“Australia’s buying habits are very similar to ours in the US. We’ve seen significant organic growth in recent years; and we forecast that will continue in the coming years. Establishing an on-the-ground local footprint in the region is incredibly exciting; not only for PakTech, but for our customers and everyone in Australia who cares about sustainability and our impact on the environment.”
Rogers says that with PakTech's launch in Australia, the company is helping customers meet not only their customer's needs, but also regulatory requirements too.
“As ESG pressures and the need for transparency increases, many companies are setting internal sustainability goals to meet regulatory mandates or customer or shareholder demands. But rather than setting goals of 25 per cent recycled content by 2025, PakTech enables businesses to use 100 per cent recycled content today,” he says.
“We’re incredibly excited by this potential, and joining an Australian market. There’s work still to be done, but we’re humbled to be able to play our part.”
According to a report from environmental consultancy firm Eunomia Research and Consulting and the European Environmental Bureau, Australia’s recycling rate ranked 21 in a list of 25 developed economies. Its recycling rate of 41.6 per cent is higher than only Finland, France, Hong Kong and the United States.
Australia is yet to mandate legislation, but could follow the lead of other markets like the UK and the US, which are in the process of establishing formal legislation regarding the use of plastics.
