ReCircle: Advancing Soft Plastic Recycling in Australia
ReCircle is a $7.6 million soft plastic recycling initiative designed to help Australia recover and reuse more commercial LDPE plastic waste.
The Commonwealth Government has approved a $3 million CRC-P grant to support the ReCircle project.
The project aims to improve soft plastic recycling in Australia by placing autonomous, on-site recycling units at major warehouses, distribution centres and manufacturing facilities.
These units process clean LDPE soft plastic waste closer to where it is generated. As a result, businesses can reduce landfill, improve material recovery and create a stronger pathway for PCR packaging in Australia.
Grant support
$3 million CRC-P funding
Project value
$7.6 million initiative
Project focus
On-site LDPE recycling
thinkpac is a named commercialisation and manufacturing partner in ReCircle. Our role is to help turn recycled LDPE into finished post-consumer recycled packaging that Australian businesses can use at scale.
This article explains how ReCircle works, what thinkpac contributes, and why commercial demand is essential for closing the soft plastic recycling loop.
The Problem With Soft Plastic Recycling in Australia
Soft plastic recycling in Australia remains a major challenge. Although LDPE plastic can often be recovered and reused, large volumes are still sent to landfill each year.
This is especially common in warehouses, distribution centres and manufacturing sites. These businesses often generate clean LDPE shrink wrap, but the recycling system is still difficult and expensive to use at scale.
Annual LDPE use
433,000 tonnes
Sent to landfill
359,000 tonnes
Recycling rate
16.2%
Australia consumes roughly 433,000 tonnes of LDPE soft plastic each year. Around 359,000 tonnes goes to landfill. As a result, the recycling rate is only 16.2%.
The issue is not only behavioural. It is also structural. For example, large distribution centres can generate up to six tonnes of LDPE shrink wrap each week.
However, most of this material enters general waste. This happens because collection, transport and centralised processing are costly. Therefore, soft plastic recycling in Australia remains hard to scale.
ReCircle is designed to make LDPE recycling more practical by processing soft plastic closer to the source.
What ReCircle Does
ReCircle installs automated recycling units directly at the sites where LDPE waste is generated. These sites may include large warehouses, distribution centres and manufacturing facilities.
Instead of sending soft plastic waste to a central recycling facility, ReCircle processes the material on-site. The system sorts, de-volumises and extrudes end-of-life LDPE shrink wrap into reusable plastic pellets.
This approach can reduce transport costs, lower emissions and make recycled LDPE easier to use in new packaging products.
The ReCircle technology integrates:
- KUKA Robotics for material handling
- NGR pelletisers for plastic processing
- FIMIC filtration for cleaner recycled output
- An IoT monitoring system to capture recycling activity and support ESG reporting
The consortium includes CSIRO for feedstock characterisation and product evaluation. It also includes RMIT University for mechatronics and equipment integration.
Industry partners include Sydney City Rubbish, ANPC, Sealed Air and Essity. The $7.6 million ReCircle project runs over three years and is scheduled to commence in 2026.
Where thinkpac Comes In
Recycling technology alone does not create a circular economy. It creates recycled pellets. For those pellets to have real value, they need to become products that businesses can use.
That requires manufacturing capability, product development knowledge and access to commercial packaging markets.
That is where thinkpac plays a key role.
thinkpac has joined ReCircle as the commercialisation and manufacturing partner. Our role is to help turn recycled LDPE into practical PCR packaging products for Australian businesses.
Defining pellet specifications
We work with CSIRO and the consortium to help ensure the recycled output is commercially usable, not only technically recyclable.
Manufacturing finished products
We convert recycled LDPE into functional packaging products that can perform in commercial and industrial environments.
Creating the end market
We help distribute finished PCR packaging back into the same supply chains that generated the original soft plastic waste.
The loop is intentional. Soft plastic waste comes from distribution and warehousing environments. ReCircle processes it on-site. Then, thinkpac helps convert that material into packaging that can be used again.
This is not just a recycling trial. It is a designed commercial supply chain for soft plastic circularity.
Why This Matters for PCR Packaging Buyers
If your business is buying packaging or considering a move to PCR packaging, ReCircle matters. It could increase the quality and volume of domestically processed recycled LDPE resin available in Australia.
The global PCR resin market is constrained. High-quality LDPE waste that has been properly sorted, filtered and pelletised is not always easy to source.
In many cases, recycled resin supply is still heavily import-dependent. ReCircle addresses this challenge at the source by capturing cleaner, mono-material LDPE waste before it enters the wider waste stream.
For thinkpac customers, this supports the long-term integrity of the ReCree8® supply chain. It also strengthens our ability to provide packaging with defensible recycled content claims, supported by independent certification.
How We Think About Circularity
Circularity is not only about collecting soft plastic waste. It is about creating a working system where recycled material has a reliable commercial use.
Technology that collects, sorts and processes soft plastics is important. However, it is only part of the solution.
If the recycled output has no end market, the material can still end up stockpiled, downgraded or wasted. Therefore, commercial demand is essential.
thinkpac’s involvement in ReCircle focuses on the commercial side of circularity. We contribute market knowledge, product development capability and a distribution network that can help absorb recycled output at scale.
Recycling that cannot be commercialised is not a circular economy. It is cost-shifted waste management.
What Comes Next
The project is currently in the agreement phase. Research, development and implementation are expected to commence in 2026.
Over the three-year programme, the consortium will build, test and refine the on-site recycling units at pilot facilities before broader rollout. In parallel, thinkpac will develop finished packaging formats that make practical use of the recycled LDPE output.
About ReCree8® by thinkpac
ReCree8® is thinkpac’s branded post-consumer recycled resin. It is used across our range of soft plastic packaging products.
Products made with ReCree8® resin are manufactured to commercial performance standards and backed by independent third-party certification. This helps Australian businesses replace virgin plastic packaging with more credible PCR alternatives.
thinkpac supplies PCR packaging to businesses across cleaning, hospitality, food processing, logistics and industrial distribution from our Melbourne distribution centre.
Discuss PCR Packaging Options for Your Business
Contact the thinkpac team to explore PCR packaging options for your business.
