Uncertainties in the recycling sector did not prevent waste management group Cleanaway increasing revenue and profits during the year.
The company reported EBITDA up 2.5 per cent in the first half to $234.6 million on sales up 4.1 per cent to $$1.19 billion.
The company’s $671 acquisition of Toxfree Solutions and subsequent integration into the business is progressing, with the purchase a template for the subsequent acquisition of the SKM business from its liquidators.
Cleanaway, Australia’s biggest recycler, is now the world’s 17th largest in the segment, with 252 sites in Australia alone.
Earlier this week Cleanaway, Pact group and Asahi Beverages announced they would build a plastics recycling plant at Albury/Wodonga, as reported in @AuManufacturing news.
Cleanaway CEO Vik Bansal said the company’s profit increased despite lower commodity prices and a reduction of waste flow into its Queensland landfill with the introduction of a state waste levy.
Bansal said: ” We are nearing the final stages of the Toxfree integration process and remain on track to deliver $35 million in synergies expected from the acquisition.”
He said the company was seeking to develop a circular economy from its waste collections and sorting businesses.
“Ultimately this will only be possible when the economic framework supports investment in downstream commodity manufacture.
“Demand for recycled materials must be created and underpinned by robust and consistent government policies and community support.”
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