Hume Council says too early to discuss alternate plans as waste giant on verge of collapse

After years of trouble, the waste giant SKM Industries may close its doors, crippling councils across Melbourne. What does that mean for Hume residents and their recycling?

Updated shots of SKM Recycling. picture: Glenn Ferguson

Hume Council says it is too early to discuss alternative recycling plans as controversial waste giant SKM teeters on the verge of collapse.

The troubled recycler stopped taking in recycling from today, saying the move was ‘temporary’.

The company’s founder Giuseppe “Joe” Italiano earlier this week warned he would shut its plants, including one in Coolaroo, as it had run out of money.

SKM Boss Giuseppe Italiano at his home in Deepdene.

A permanent closure would cripple recycling for more than 30 councils, including Hume.

Recycling collected during the temporary shutdown will instead go to landfill.

On Wednesday, the troubled recycler got a week-long reprieve in Victoria’s Supreme Court to fund paying its growing debts both here and interstate.

Hume Council’s sustainable infrastructure and services director Peter Waite said they had a contract with SKM Industries to receive household recyclable material at its sorting facilities.

He said they expected the contract conditions to be met.

“At this stage, it is premature to talk about contingencies as there are a number of different outcomes being speculated (upon),” Mr Waite said.

“Council is monitoring the situation and liaising with key stakeholders, such as the Municipal Authority Victoria, Metro Waste and Resource Recovery Group, Environment Protection Authority and WorkSafe as appropriate, to ensure the best outcome for the community should the company’s circumstances change.”

Mr Waite said the council would continue to update the community with information as it was available.

“All households are asked to consider how they can reduce their waste in the first instance, and encouraged to continue to sort their rubbish and recycling as normal,” he said.

SKM Recycling. picture: Glenn Ferguson

The State Government has begun talks with other businesses that might be able to shoulder more of the waste burden should SKM be shutdown or fall over, but it has refused to bailout the recycler, labelling it a “rogue operator”.

The business has been in constant trouble with authorities over compliance after a huge fire broke out at its Coolaroo plant in July 2017.

The blaze, which burned for nearly two weeks, sent out toxic plumes across Melbourne, forcing the evacuation of several homes and businesses across Hume.