Page 8 - Packaging News Sep-Oct 2020

8 NEWS |
www.packagingnews.com.au | September-October 2020
Pro-Pac posts steady FY20 results
Govt introduces
waste and recycling
legislation
THE federal government recently introduced legislation that establishes a national industry framework for recycling and puts into effect an export ban for recyclable waste.
The Recycling and Waste Reduction Bill 2020 will phase in an end to the 645,000 tonnes of unprocessed plastic, paper, glass, and tyres that Australia ships overseas each year.
In a speech in Parliament for the bill’s second reading, Minister for the Environment Sussan Ley said the bill imple- ments the agreement by all of Australia’s governments to ban the export of waste plastic, paper, glass and tyres.
“[The bill] includes improve- ments to better regulate and encourage our businesses – those that design, manufacture, distribute, and use products – to take greater responsibility for their environmental impacts,” Ley said in her speech.
“The waste export ban is a once-in-a-generation opportu- nity to transform our waste management and recycling sec- tor to collect, recycle, reuse and convert waste into a resource. This reform is expected to see the Australian economy turn over an additional $3.6bn and potentially generate $1.5bn in
ASX-LISTED Pro-Pac Packaging had a good year over the 12 months to 30 June, with increases in profits and decreases in debt, according to the company’s financial results statement.
Pro-Pac’s statutory net profit after tax (NPAT) was up by $158m on the previous year at $6.6m. The company’s EBITDA was up by 15.4 per cent at $32.4m, with its EBITDA margin up by 1 per cent at 6.8 per cent.
The company reduced its net debt by 44.4 per cent to $46.1m. Pro-Pac CEO and managing director Tim Welsh said he was proud of how the company con- tinued to focus on growth objec- tives and delivered a set of strong financial results despite the ongoing challenges of the
Covid-19 pandemic.
“The net debt improvement
was a significant achievement for the company and was accom- plished through the combina- tion of improvements in
Pro-Pac CEO and managing director Tim Welsh
earnings and working capital,” Welsh said.
Welsh said the closure of the company’s Chester Hill NSW facility and the consolidation of its production footprint would position the flexibles division well. The closure of Pro-Pac’s Chester Hill facility, announced in May, is to be completed in the present financial year. Production is to be relocated to existing facili- ties across Australia.
economic activity over the next 20 years.”
In her speech, Ley explained the bill establishes a framework, enabling the legislative instru- ments to “bring the waste export ban to life”.
Australian Council of Recycling CEO Pete Shmigel said the legislation, taken together with other reforms, marks a new era of environmen- tal and economic achievement in recycling through govern- ment leadership and industry partnership and innovation.
“It’s especially good that the government is holding to account those who put products into the marketplace by ensur- ing their footprint is reduced including through recyclability and recycled content manufac- ture,” he said.
Shmigel acknowledged the government’s strong focus on achieving the targets of the pol- icy, including for plastics and recycling.
“Specific acknowledgement and positive vibes go to the PM, the Minister for Environment, and the Assistant Minister for Waste Reduction for their per- sonal leadership, initiative, and commitment to this highwater mark in recycling policy and future results,” Shmigel said.
Della Toffola sells majority stake
INVESTINDUSTRIAL, an invest- ment group, has inked an agreement to acquire a majority stake in packaging and pro- cessing machinery and auto- mated line designer and manu- facturer Della Toffola.
The brothers Vittorio, Francesco and Luciano Della Toffola, who are the current sole shareholders, will remain minor- ity shareholders, owning 26.5 per cent of the company jointly, with Investindustrial owning the remaining 73.5 per cent.
Della Toffola chairman Vittorio Della Toffola said this is a signifi- cant moment for the growth of the company, which was founded by his father 60 years ago.
“With the investment of Investindustrial, our expansion and internationalisation proj- ects will be strengthened and promoted, continuing the path that my brothers and I have pur- sued over the last years,” he said.
Della Toffola Pacific managing director Paul Baggio said the acquisition sets the stage for a period of growth and develop- ment for the firm and its subsid- iaries, like Della Toffola Pacific.
“The future is bright for Della Toffola Pacific. The 2030-21 year is already well placed with many exciting new projects in build and on track for installa- tion into the Australian and NZ markets,” he said.