Plastic recycler and packaging manufacturer Pact Group and clean technology company BlockTexx will jointly explore the development of a garment collection and recycling operations for fashion brands and clothing retailers in Australia.

The two companies have signed a memorandum of understanding to determine the feasibility of establishing an end-to-end solution for discarded polyester and cotton-blend clothes. The proposed operations would involve the collection, sorting and pre-processing of used garments, and the recycling of polycotton, polyester and cotton garments into raw materials which could be used to make yarn for new clothes, non-food grade plastic packaging products or other sustainable applications.

Pact has expertise in the fashion industry supply chain through its Retail Accessories division, which collects and redistributes used plastic garment hangers from retail stores in Australia and internationally. The hangers are sorted, quality inspected and distributed to garment and accessory suppliers so they can be reused multiple times instead of being sent to landfill.  Hangers not suitable for reuse stay in the loop because the material is recycled and used to produce new hangers.

Pact’s Packaging division manufactures rigid plastic packaging for everyday products in the food, beverage and dairy industries, as well as industrial products such as paint and AgriChem containers.

BlockTexx has developed a chemical recycling process for hard-to-recycle polyester and cotton blends to produce recycled material and is currently recycling textiles at its Loganholme facility south of Brisbane, QLD.

The BlockTexx recycling technology supports fibre-to-fibre for new clothing, fibre-to-product manufacturing, and fibre-to-agriculture applications, ensuring that textiles are given a second life, promoting resource efficiency and sustainability throughout the industry.

The feasibility study will look at the garment collection supply chain in Australia, the technical requirements needed to meet the BlockTexx recycling processes, and the suitability of using the recycled raw materials within Pact’s packaging portfolio and other applications.

Pact CEO Sanjay Dayal said: “Pact’s existing presence in the global fashion supply chain through our Retail Accessories business enables us to expand our expertise across the garment supply chain beyond just hangers. This initiative with BlockTexx demonstrates our commitment to leading the circular economy through partnerships and collaboration to offer sustainable solutions for our customers.”

BlockTexx co-founder Adrian Jones said: “This project aims to accelerate the fashion industry’s shift towards more sustainable products by combining Pact’s capabilities in sustainable retail supply chains with BlockTexx’s textile recycling innovations. This could enable businesses in the fashion and textiles sector to transition to more sustainable and circular practices and assist in the reduction of CO2 emissions and prevent unwearable textiles from going to landfill, both here and overseas.”

According to Australia’s clothing product stewardship scheme, Seamless, the Australian clothing industry manufactures and imports about 1.4 billion items of new clothing every year, most of which is made from non-renewable and environmentally problematic materials. More than half of this clothing ends up in landfill in Australia, which amounts to 200,000 tonnes per year.

Pact and BlockTexx are aiming to complete the feasibility study by the end of FY25.

Pact’s Retail Accessories operations in Ningbo China.

View BlockTexx’s Processing, Testing and Manufacturing operations in Queensland.

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Testing:

Manufacturing: