Pact Group acquires Flight Plastics to boost New Zealand circular economy

Pact Group has completed its acquisition of New Zealand’s Flight Plastics, a provider of packaging for the fresh food segment, for an undisclosed sum.

According to Pact, Flight Plastics is the country’s only packaging manufacturer with integrated PET recycling capability, with the capacity to process more than 5,000 tonnes of rPET.

The deal marks another step in Pact’s circular economy strategy, with Flight Plastics complementing and enhancing its recycling capability in both Australia and New Zealand.

Following the acquisition, Pact will be able to provide customers in the fresh food segment in both New Zealand and Australia with packaging containing food grade recycled content.

Established in the early 1900’s, Flight Plastics is a rigid plastic packaging manufacturer that offers a range of trays and containers for packaged grocery products – such as fruit, bakery, meat and seafood – from both rPET and virgin resins.

The Australian- and New Zealand-based manufacturer operates its own recycling plant that produces rPET, which will enable Pact to turn waste into products and support a local circular economy.

“We have a vision to lead the circular economy. The acquisition of Flight is strongly aligned to our strategy,” said Pact’s managing director and CEO, Sanjay Dayal.

He added: “We are investing across our platform to develop the recycling capability our customers will need to deliver their 2025 sustainability commitments. Our target is 30% recycled content across our portfolio, which means we will need more than 60,000 tonnes of recycling capacity by 2025.

“As an integrated recycling and packaging manufacturer we have a special position in the plastics value chain. We have capability not only to recycle plastics, but also to create demand for recycled materials through innovative packaging design and manufacture. Flight strongly compliments and enhances our platform.”

Last year, Pact Group teamed up with Asahi Beverages and Cleanaway Waste Management to form a joint venture and build a recycling plant in Australia, which started construction earlier this month.