Pact Group and ALDI Australia have rolled out a scheme to make more than 19 million laundry and cleaning bottles a year with up to 50% Australian recycled plastic resin, doubling prior recycled content levels for seven ALDI own-brand laundry products and three cleaning products. The programme uses almost 800 tonnes of recycled resin annually, sourced from kerbside collection and processed at Pact's Circular Plastics Australia facility in Melbourne, with bottles manufactured in New South Wales. The two companies have also renewed a three-year packaging design partnership.
Why this mattersA named retailer locking in 50% recycled content at scale, at no extra cost via coloured resin, sets a cost-neutral template other grocers may be pushed to match.
- 19.3 million ALDI laundry and cleaning bottles produced annually with up to 50% Australian recycled plastic resin
- Almost 800 tonnes of recycled plastic resin used each year across 10 bottle and container lines
- Recycled content doubled on seven ALDI own-brand laundry bottles and containers
- Three ALDI cleaning product bottles increased recycled content to up to 50%
- Recycled resin sourced from Australian kerbside bins and processed at Pact's Circular Plastics Australia plant in Melbourne
- Pact and ALDI renewed a three-year strategic packaging partnership
Australia's federal government has decided not to progress national packaging reforms, including a mandatory minimum recycled-plastics content scheme first promised in 2023, during the current term of parliament. Environment Minister Murray Watt cited cost-of-living concerns last month. Industry figures, including Pact Group executive chair Raphael Geminder, warn the delay undermines investment in local recycling capacity built with government funding, as environment ministers were due to meet on 18 September to discuss next steps.
Why this mattersWithout national recycled-content rules, plastics recyclers lose the demand needed to justify capacity already built with public funding, threatening Australia's circular-plastics investment case.
- Federal government will not introduce national packaging reforms, including a mandatory minimum recycled-plastics content scheme, in this term of parliament.
- The scheme was first promised in 2023; Environment Minister Murray Watt confirmed the shelving last month, citing cost-of-living concerns.
- Pact Group executive chair Raphael Geminder says the delay risks wasting taxpayer investment and locks Australia into a landfill-first plastic waste approach.
- Australia's environment ministers were scheduled to meet on 18 September 2026 to decide on packaging-waste actions.
- Beverages are currently the only consumer products fully covered by mandated EPR via container deposit schemes, according to the Australian Beverages Council.
- The FY25 Clean Up Australia Litter Report found packaging and containers account for 59.5% of all reported litter.
About 50 unionised workers at Pact Packing's Lower Hutt, New Zealand plant staged a two-hour strike on 16 September 2026 after rejecting the company's pay offer. Union E tū said the offer of an extra NZD 0.66 an hour falls well short of the NZD 29.90 living wage, with average pay around NZD 26 an hour. Pact Group said it remains committed to bargaining in good faith under a multi-employer collective agreement covering five other companies.
Why this mattersWage disputes at converting sites signal rising labour cost pressure for packaging manufacturers operating in tight local labour markets.
- About 50 union-affiliated workers struck for two hours on 16 September 2026 at Pact Packing in Lower Hutt, New Zealand.
- Pact Group's pay offer was an extra NZD 0.66 an hour.
- Union E tū says average worker pay is around NZD 26 an hour versus a living wage of NZD 29.90.
- Inflation was cited at 4.1 percent.
- Workers had previously sought an 8 percent rise, which would lift average pay to just over NZD 28 an hour.
- The plant is covered by a multi-employer collective agreement including five other companies.
The Australian government has confirmed that no new Commonwealth packaging scheme will be introduced this term, days after plastics recycler Recycling Plastics Australia entered voluntary administration, putting about 60 Adelaide jobs and domestic plastics-processing capacity at risk. Pact Group chair Raphael Geminder described the outcome as a policy rather than a technology failure, while the Australian Council of Recycling and the Waste Management and Resource Recovery Association pointed to the unsustainable economics facing plastics recyclers. The environment department says it will instead work with states and territories on nearer-term packaging measures, with no decision taken on how the recyclability grading framework will be used.
Why this mattersThe retreat leaves recyclers built with federal money exposed to imports and fragmented state rules, with no national scheme to underwrite demand for their output.
- Recycling Plastics Australia entered voluntary administration, putting about 60 Adelaide jobs at risk
- The federal environment department told consultation participants that a new Commonwealth packaging scheme will not be introduced in this term of government
- The department says it will work with states and territories on nearer-term packaging regulation instead, with no decision on the recyclability grading framework
- Pact Group chair Raphael Geminder said the government banned plastic waste exports and put AUD 137 million into recycling plants without creating the market conditions for them to be viable
- Australia has banned the export of plastic waste, requiring the material to be processed domestically
- The latest consultation on the Design for Kerbside Recyclability Grading Framework drew on more than 65 interviews
Pact Group CEO and managing director Sanjay Dayal has told the board he intends to leave the Australian packaging company, triggering an executive search for his successor. Dayal, who joined in April 2019, will stay in post until a replacement is named; no timeframe for the appointment has been disclosed.
Why this mattersThe departure of the executive who led Pact's circular-economy and reuse strategy creates transition risk for the company's sustainability positioning and customer partnerships.
- Sanjay Dayal has advised Pact Group's board of his intention to step down as CEO and managing director
- Dayal joined Pact in April 2019, over seven years in the role
- An executive search for his successor is under way, with no disclosed timeframe
- Dayal will remain CEO until a new chief executive takes up the role
- Under Dayal, Pact established recycling and reuse joint ventures and long-term customer partnerships
- Executive chair Raphael Geminder thanked Dayal for his leadership and committed to an orderly transition
