Since listing on the ASX in December last year, Close the Loop Group has been firmly on the acquisition trail, and moving forward at pace to deliver on its goals of creating circularity across the group’s multifaceted operations.
Well positioned within the circular economy, Close the Loop Group creates innovative products and packaging that includes recyclable and made-from recycled content, as well as collects, sorts, reclaims and reuses resources that would otherwise go to landfill.
This circular economy journey began over 20 years ago, with the refilling of consumer printer cartridges. Founder of the group’s Close the Loop division, Steve Morriss, soon realised the value of providing take-back and recovery services to the Original Equipment Manufacturers (OEMs) of the cartridge and toner products and other related printer consumables. Close the Loop then provided the capability for these products to be sent back to manufacturers for reuse at scale, while diverting other printer consumables from landfill through their in-house processing capability.
Today, Close the Loop Group provides take-back, processing, reuse and recycling of several hard-to-recycle products, including cosmetics, post-consumer soft plastic packaging, and e-waste with a ‘zero waste to landfill’ approach.
And its accolades are stacking up. For example, the group’s OF Packaging division has been widely recognised for its Roll ‘n’ Recycle kerbside recycling solution, developed in partnership with Prep Design. It’s based on a mono-polymer pouch adopted first by brand owner Brookfarm and soon to roll out with other products in its range. The pinnacle accolade for this product was the Diamond trophy at the prestigious Dow 2021 Packaging Innovation Awards, which recognise packaging projects from around the globe demonstrating the very best in sustainable innovation.
The string of awards continues to grow. Apart from winning gold in the PIDAs 2022 Sustainability Packaging Design of the Year, Reuse / Refill category for its Koh Kerbside Recyclable Spout Pouch Refill Pack, Close the Loop Group also won IPO of the Year at the Australian Business Growth Awards, and recently announced that it is a finalist in the Circular Leader category for the 2022 inaugural ACE Awards, organised by the Australian Circular Economy Hub.
RAPID GROWTH
So, how did the group start and what is the secret of its swift and successful growth?
In December 2021, O F Packaging and Close the Loop joined forces to form the new entity Close the Loop Group and listed on the Australian Stock Exchange with the ticker “CLG”, with operations across Australia, Europe, South Africa and the United States.
Shortly after listing, Close the Loop Group acquired Queensland-based seafood packaging operation Oceanic Agencies to boost its offering to the aquaculture market. Then, in February this year, it bought Sydney-based bulk packaging business Crasti & Co, supplier of flexible intermediate bulk containers (FIBCs) – large woven polypropylene bags – and other bulk packaging to food manufacturing, construction, and primary industries.
A month later it expanded its packaging operations in the US and European markets with the formation of Close the Loop Packaging, based in Kentucky and Belgium respectively, which will service the customer network of the group’s resource recovery businesses on those two continents.
In July, the group acquired thermal paper supplier and sustainable paper products group Alliance Paper (the largest and longest-serving supplier and converter of paper roll products in Australia) and announced it had commenced trials on making and printing paper-based flexible packaging.
That same month, the group’s Close the Loop division partnered with Myer to conduct an eight-week trial to recycle and reuse cosmetics packaging, with guidance provided by peak industry body Accord. With support from the Australian government’s National Product Stewardship Investment Fund, the group researched ways of recycling cosmetics to reduce the estimated 5000-11,500 tonnes of cosmetic packaging currently being sent to landfill in the country each year.
The group is also looking to support and encourage the use of reusable and recycled-content products across the supply chain. Also in July, the group became a distributor of Multitank, a nestable, food-grade certified and reusable bulk container, made from recycled PP, that the company says greatly reduces carbon emissions associated with the transportation of products.
According to the company, the potential for this bin is enormous due to the many production and agriculture industries prevalent in Australia and New Zealand. In addition, the group reveals that there is a new design coming out late next year, which it says will be “an absolute game changer” to the landscape of bulk bins in these regions.
Close the Loop has also partnered with REDcycle in the creation of TonerPlas, and the manufacture of rFlex, a recycled plastic for injection-moulding.
TonerPlas is Close the Loop’s award-winning asphalt additive, which uses consumer waste soft plastics and toner from old printer cartridges, and other inputs to create a key binding ingredient used in roads that makes them last longer and requires less maintenance than traditional asphalt. Designed to be mixed with asphalt, it improves the mechanical properties of the road leading to improved durability and a reduced carbon footprint.
rFlex resin for injection-moulded plastic products is manufactured using waste soft plastics from supermarket customers which are then made into a variety of products and commodities.
Close the Loop usually collects post consumer soft plastics from several sources that include REDcycle. However, a fire on one of the production lines earlier this year has meant that it has been unable to accept any of these materials since June. CEO Joe Foster has confirmed that the line will be in full production again by July 2023, with more than three times the capacity and will then require large volumes of this material to meet a growing demand for TonerPlas and rFlex.
One year on from its listing last year, it’s fair to say that the group has moved swiftly to amass assets, deliver value for stakeholders, and drive forward its stated intent to become a leader in plastics circularity.
This article was first published in the November-December 2022 print issue of PKN Packaging News, p10.
