February 28, 2025 -- 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.
At a glance
- Company
- Pact Group
- Announcement
- Partnership
- Location
- Australia
Key figures
- New clothing items manufactured and imported annually in Australia
- about 1.4 billion items
- Clothing reportedly sent to landfill in Australia
- More than half
- Clothing reportedly sent to landfill annually in Australia
- 200,000 tonnes per year
- Target timing for feasibility study completion
- by the end of FY25
People
- Sanjay DayalPact CEO
- Adrian JonesBlockTexx co-founder
Products and programs
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.
https://vimeo.com/655937012/65fbb2a3bc
View BlockTexx’s Processing, Testing and Manufacturing operations in Queensland.
Processing:
Testing:
Manufacturing:
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In brief
Pact Group and BlockTexx have signed a memorandum of understanding to assess whether an Australian system can collect and recycle discarded polyester and cotton-blend clothing. The proposed chain would cover garment collection, sorting and preparation, with recovered materials potentially used in yarn, non-food plastic packaging and other applications. The study will examine collection logistics, technical requirements for BlockTexx’s process and whether the resulting materials suit Pact’s packaging range. Pact already handles reusable garment hangers through its Retail Accessories division, while BlockTexx operates a textile recycling facility in Loganholme, Queensland. The companies aim to finish the study by the end of FY25. The release cites industry estimates that Australia imports and makes about 1.4 billion new clothing items annually, with more than half reportedly going to landfill.
Key takeaways
- The companies will study the feasibility of an Australian garment collection and recycling operation.
- The proposal focuses on discarded polyester and cotton-blend clothing.
- The study will assess collection logistics, recycling requirements and potential uses for recovered material.
- The companies aim to complete the feasibility study by the end of FY25.
Earlier from Pact Group
- Giving thermoformed PET meat and produce trays a second life
- Australia first initiative to recycle and remake agrichem packaging
- Plastic recycling could sink or swim with Australia’s planned packaging laws
- Pact Group and Morrison complete deal for Crate Pooling business
- Packaging reforms will be a step change for Australia’s circular economy
