Launch of recycling plant to make egg cartons

A new recycling plant that will manufacture moulded egg cartons from newsprint and old telephone books will be a boost to both consumers and the environment, Deputy Premier Ian Taylor said today.

The suction moulded egg carton plant in Palmyra, a joint venture by local company Paper and Pulp International and China's largest corporation CITIC, was officially opened by Mr Taylor this morning.

"The opening of this new plant is the culmination of two years of planning and co-operation by the Department of State Development's recycling unit, the Western Australian Egg Marketing Board and private enterprise," Mr Taylor said.

"The locally-made egg cartons will replace those previously purchased from the Eastern States and, as well as utilising local waste paper, will result in considerable cost savings.

"Significantly, the WA Egg Marketing Board has informed me that due to the cost efficiencies of this product, the wholesale price of shell eggs sold by and through the board, will fall by two cents a dozen from March 16."

Paper Products won a five-year contract with the WA Egg Marketing Board last year to supply their full requirement of egg cartons - about 16 million cartons annually.

Mr Taylor said that due to the high quality and cost competitiveness of the cartons, it was likely they would also be marketed in the Eastern States against traditional suppliers.

"While there is a good market for this product, the environmental advantages should not be ignored.  In addition to the newsprint recycling, it uses only a small amount of energy, there is no solid waste hazard or liquid effluent, and most of the processed water is recycled," he said.

Mr Taylor said the industry had made sensible decisions to secure its long-term future by purchasing the most up-to-date pulp moulding technology, which will enable them to diversify into a range of products including packaging in the food and medical industries.

"This plant is a prime example of how industries can use recycled feedstock not only to match their competition, but in fact beat them in terms of efficiency," he said.