Dozens of jobs up in the air as major Australian recycling company falls into administration

One of Australia’s largest plastics recycling businesses has collapsed into voluntary administration, creating uncertainty for the company’s dozens of employees.

Recycling Plastics Australia has appointed Tim Mableson and Ned Swifte from KPMG as voluntary administrators.

The business is based in Kilburn in South Australia and employs about 60 staff.

Recycling Plastics Australia’s directors said voluntary administration “is the most appropriate course of action to preserve value and provide the business with an opportunity to explore restructuring and recapitalisation options”.

“A significant factor in this decision was the recent insolvency of a major supplier to RPA,” the directors said in a statement.

“This unexpected development created considerable additional uncertainty in an already challenging business environment which in turn materially affected RPA’s ability to proceed with its planned operations.

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“The directors thank RPA’s employees, customers, suppliers and other stakeholders for their continued support.

“We’ll work closely and constructively with the administrators throughout the process.”

The company said the change was despite the “significant efforts of management and shareholders to recapitalise the business and continue operations”.

Mableson said the administrators would engage closely with customers, suppliers, employees and government stakeholders to achieve “the most optimal outcome”.

“As administrators we recognise the important role RPA performs within Australia’s recycling infrastructure,” Mabelson said.

Recycling Plastics Australia previously received a $20 million federal government grant in 2024 to buy new state-of-the-art machinery to recycle soft plastics and employ staff.

The Australian government’s investment aimed to help divert 14,000 tonnes of soft plastics away from landfill every year.