Recycling Plastics Australia Collapses Into Administration, 60 Jobs at Risk

Recycling Plastics Australia has appointed voluntary administrators from KPMG after a major supplier’s insolvency pushed the South Australian company into collapse. The Kilburn-based firm, which processes 20,000 tonnes of plastic annually and employs about 60 staff, received a $20 million federal government grant in 2024 to expand soft plastics recycling. The administration now threatens those jobs and exposes vulnerabilities in Australia’s recycling sector.

What triggered the administration

A major supplier to Recycling Plastics Australia became insolvent, creating what the company’s directors called “considerable additional uncertainty” in an already challenging business environment. This unexpected insolvency materially affected RPA’s ability to proceed with planned operations. The collapse came despite significant efforts by management and shareholders to recapitalise the business and continue operations.

The $20 million grant and what it was meant to do

The Australian government awarded Recycling Plastics Australia $20 million in 2024 to purchase state-of-the-art machinery for recycling soft plastics. The investment aimed to divert more than 14,000 tonnes of soft plastics from South Australian landfills each year. Just over two years later, the company has entered administration, raising questions about the effectiveness of the public funding and the viability of recycling infrastructure.

Jobs and industry impact

About 60 employees work at the Kilburn facility. Tim Mableson and Ned Swifte from KPMG have been appointed administrators and are assessing whether the company can be restructured, sold, or forced to close. Suzanne Toumbourou, CEO of the Australian Council of Recycling, told Yahoo News Australia that the 20,000-tonne-per-year facility represents “a vital part of capacity in Australia” and is closely linked to household recycling systems across the country.

Broader recycling sector challenges

The collapse exposes structural problems in Australia’s recycling industry. Toumbourou said locally recycled plastic costs about 50 per cent more than virgin plastic imported from overseas when Australian wages, energy, logistics and regulatory costs are considered. She accused the federal government of “pulling the rug out from under” publicly backed infrastructure by retreating from promised packaging reforms. Australia cannot export plastic waste and faces competition from cheap plastic imports on an uneven playing field.

Final Thoughts

Recycling Plastics Australia’s collapse exposes the fragility of Australia’s recycling infrastructure despite government investment. With 60 jobs at risk and 20,000 tonnes of annual processing capacity in jeopardy, the administration raises urgent questions about whether the sector can survive without stronger policy support and packaging reform.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.