Recyclables processing procurement

The Central and Western Recyclables Receival and Processing Contract provides kerbside recycling processing for the councils of Brimbank, Melbourne, Port Phillip and Wyndham.

SKM Industries Pty Ltd is contracted to sustainably receive and process all commingled recyclables and bulk cardboard for this council group for a period of 10 years (until 2026).

The combined significant volume and consistent supply of recyclable materials from these councils allows the contractor to invest in providing ‘best practice’ facilities. This includes employing measures to minimise the generation of greenhouse gas emissions, producing useable and marketable end-products or energy, committing to the marketing and sale of all resulting end-products, and continuously improving recycling and waste diversion processes and capacity to recycle and reuse a wider range of materials.

As a result of this contract, SKM Industries will be processing approximately 50,000 tonnes of recyclable material from the participating councils each year.  Melbourne households generate approximately 400,000 tonnes of recycling each year.


Recycling industry support for councils

Guidance notes, model contract clauses and recycling pricing model

In July 2018 the Victorian Government issued the Recycling Industry Strategic Plan with the aim of building a resilient recycling sector that is part of a circular economy and characterised by:

  • adaptability to market disruptions and opportunities
  • cost-effective, safe and reliable household services
  • high recovery rates
  • long-term supply of recycled materials is aligned with demand from downstream markets and uses.

We acknowledge that recent changes in the sector are posing serious challenges for councils in the management of household recycling services. It is important that councils develop new pricing arrangements with materials recovery facility (MRF) operators that provide clarity and certainty for the community, a more diverse recycling industry and greater resilience to market changes.

We have worked with Local Government Victoria to develop guidance, model contract clauses and a recycling pricing model to allow for greater flexibility and transparency in pricing and services for the sorting of kerbside commingled recycling. These documents can be downloaded below.



Last updated: 11/02/2019