Plastic recycling and packaging company Pact Group has partnered with textile recycling technology firm BlockTexx to develop a system for recycling discarded clothing in Australia. The two companies have signed an agreement to explore the possibility of creating a complete process for collecting, sorting, and recycling used garments from fashion brands and retailers.

The initiative will focus on recycling polyester and cotton-blend clothing by turning them into raw materials. These materials can then be repurposed into new yarn for textiles, non-food-grade plastic packaging, or other products. The goal is to provide a sustainable alternative to landfill disposal.

Both Pact and BlockTexx bring valuable expertise to the project. Pact’s Retail Accessories division already collects and reuses plastic hangers from retail stores. Now, the company is looking to expand its role in the sustainable fashion supply chain.

"Pact’s involvement in the global fashion industry through our Retail Accessories business allows us to extend our impact beyond hangers," said Sanjay Dayal, CEO of Pact. "Our partnership with BlockTexx highlights our commitment to sustainability by collaborating on solutions that support a circular economy."

As part of this partnership, Pact and BlockTexx will conduct a study to assess Australia’s clothing collection system, identify the technical needs for recycling, and determine whether the processed raw materials can be used in Pact’s packaging and other products. They aim to complete this study by the end of the year.