Only 9% of global plastic waste is recycled. The rest is mismanaged, dumped into the oceans, landfilled or forgotten. And it’s not getting any better. Plastic pollution is set to increase, more than doubling by 2030.
Recognising the urgent need to develop a fix, sustainable packaging manufacturer SECOS (ASX: SES) is launching a new 95% Certified Recycled MyEco range of products. Its new bin liner range comprises 95% recycled soft plastics (think spaghetti packets or biscuit wrappers). It is geared towards reducing the amount of virgin plastic (made using resin, crude oil, or natural gas) in the environment. In doing so, it is also helping reduce petroleum consumption and CO2 emissions.
SECOS CEO, Richard Tegoni, said, “We believe our new 95% certified recycled range will set a new standard for sustainability in the recycled soft plastic bag segment and provides a genuine solution to recycling soft plastics that has eluded much of the industry to date.”
SECOS is an Aussie company with its MyEco range produced in Asian manufacturing plants. Its new range further aligns with its aim to support the Australian Government’s environmental policy of “Reuse, Recycle or Compost”, as stated in the Australian National Plastic Plan and aims to reduce dependence on single-use plastics.
The bin liner range will come in multiple bag sizes and be marketed by SECOS in Australia and the USA via the Company’s exclusive distributor, Jewett Cameron Trading Company. It will also be supported by a national marketing campaign to build brand awareness and drive sales through its sizeable retail distribution footprint within Australia.
The campaign will also support SECOS’ existing compostable MyEco® bioplastic bag range via retailers, including Woolworths and Coles.
Unlike many recycled products, SECOS’ range is produced using post-consumer waste, utilising plastic that has been used, disposed of and diverted from landfill. This has more significant environmental benefits than pre-consumer recycled products made using manufacturing offcuts and those that consumers have never used.
Tegoni added, “Our Australian research and development centre played a significant role in bringing this product to market, which we expect to drive significant additional sales of our sustainable plastics range. We expect to see further product developments emerge from our ongoing investment in R&D, which will drive returns for our shareholders.”
In H1 FY23, MyEco retail sales brought in over $1 million. It was the top brand within Woolies’ compostable bin liner and kitchen caddy sales, comprising over 30% of sales in this category. Despite that, the Company’s cash in hand reduced from over $7 million in H1 FY22 to $4.5 million in H1 FY23, largely disrupted by excess inventory, supply chain issues and the departure from single-use plastics. Its revenue fell 23.1% to $11.7 million, and SECOS accumulated losses to the tune of over $2.5 million, up over 100% on H1 FY22.
This eco-conscious venture is timely, not just for the environment but for the Company, too. Initial sales from the new range are expected in Q4 FY23.
Alinda is a Business Reporter for The Sentiment
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