Closed for two years, Kilburn recycling plant reopens as Recycling Plastics Australia

Almost two years after it shut its doors due to sky-high power prices, a recycling plant will reopen its doors under a new name and aiming at a new market.

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Almost two years after it shut its doors due to sky high power prices, Kilburn’s Plastic Granulating Services will reopen its doors under a new name — Recycling Plastics Australia.

The company has announced a $12.5 million plan, including a $3 million State Government loan, to reopen the facility and invest in advanced sorting equipment.

PGS closed in July 2017, saying its electricity bill had spiked to $180,000 a month, up from $80,000.

The rebirth, funded by five investors, will take advantage of the opportunities presented by China’s National Sword policy, which banned the import of certain waste products.

The newly badged RPA turns plastic waste into plastic “pellets”, which are processed into products such as irrigation piping and bollards. RPA plans to create 40 full-time jobs over the next few years.

RPA general manager Steve Scherer, who held the same role for PGS, said the pellets would be both sold in South Australia and exported.

The company also plans to sell plastic products straight back to manufacturers.

“The concept of us going around in a circle with the plastic was the driver, and that’s what the investors have brought into,” he said.

“We aren’t going back into traditional recycling, it’s actually going back into a new market to create a circular market product.”

RPA says it will accept plastic waste from SA councils, diverting 25,000 tonnes of waste from landfill — but that won’t entirely ease the economic strain put on it by the China Sword policy.

Environment Minister David Speirs said the Green Industries grant was handed out to develop a “circular economy” in the state.

“Realising the benefits of recycling to achieve the greatest value from waste is especially important for achieving our target to meet the United Nations’ Sustainable Development Goals,” Mr Speirs said.

“In SA we are uniquely positioned to demonstrate the circular economy principles as our reforms and incentives are improving and increasing the value of our waste.”