Paper and packaging giant Visy will cease accepting recyclable materials in early February, citing the commercial difficulties caused by China's ban on the importation of certain types of waste.
One of its contractors, Wheelie Waste, services 11 councils in western Victoria. Horsham Rural City Council has said that it will stockpile its recycling, until a solution appears.
China was the dominant market for recycled plastic. The Institute of Scrap Recycling Materials figures show China used to import seven million metric tons of waste plastic and 29 million metric tons of waste paper annually.
Many countries including Japan, Australia and New Zealand have relied on China to take a lot of its waste plastics for recycling, and waste paper, while the EU and US also relied on the country to take plastic waste, including PET bottles.
About 30 per cent of Australian recycling was estimated to be sent to China, before the country banned 24 categories of recyclables and solid waste.
Visy warned the ban would mean existing arrangements would no longer be sustainable in a submission to a parliament inquiry into recycling last year, along with adding to stockpiling of product and risks of fires.
The company is one of Australia’s largest recyclers, the company claims that in a year it processes 91,000 tonnes of plastic and 1.8m tonnes of paper and cardboard.
Reuters reports huge mountains of old newspapers, cardboard and office scrap paper are piling up on Hong Kong's docks and its waste-paper collection sites are at bursting point, as shipping companies refuse to take waste cargo to China.
Cargo ships laden with paper meant for recycling have been stuck in local waters.
The city's system for dealing with its paper waste has been failing since China in July imposed a ban on imports of 24 types of rubbish, as part of a campaign against "foreign garbage" and environmental pollution, including unsorted scrap paper.
Visy is privately owned by the Pratt family and along with processing waste, produces paper and packaging material across 120 locations across Australia, NZ, Thailand and Vietnam with sales in excess of $5bn.
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