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Ballarat recycled plastics manufacturer, Replas, said it learned about the collapse of one of its suppliers, REDcycle, at the same time as the public.
Key points:
Replas has been manufacturing a range of recycled plastic products in Ballarat since 1993
REDcycle was one of the company's many suppliers
Replas's general manager says its production line will not be impacted by REDcycle halting its scheme
Since 2011, Replas has paid for REDcycle to supply soft plastics collected from Coles and Woolworths to help it manufacture a range of products, including underground water pipe supports.
Replas general manager Paul Hone said the last delivery of materials from REDcycle was in late October — just days before news broke that the company had suspended its soft plastics recycling scheme.
"It was as much a surprise to us as everyone else," Mr Hone said.
"There was no way we could've foretold the premier supermarket recycling program was going to fall over. Just no way we could've known.
"At this point, we're not sure of when we'll be able to get hold of any more material."
On November 9, REDcycle said one of the reasons for its collapse was that its partners, including Replas, were unable to take the material for recycling.
But Mr Hone said Replas was "absolutely ready and happy to take the material from REDcycle, or whoever might be able to supply it" to them.
"At this moment in time, we would like to support REDcycle moving forward. They were trying to do the right thing by the environment."
REDcycle declined the ABC's request for comment.
Production line to keep rolling
Mr Hone said there would be a "significant" financial impact to the company from REDcycle pausing its scheme but would not disclose an exact figure.
But looking to its production line, Mr Hone said Replas could secure recycled materials for its products elsewhere, including local hospitals, to keep manufacturing running smoothly.
The type of product Replas is making, and supply availability, dictates how much of any one supplier's recycled material is used.
For example, coloured bollards could use a high proportion of curtains or blankets supplied by either Ballarat or Bendigo hospitals.
Need for government support
Moving forward, Mr Hone said governments should consider incentivising the use of recycled plastics products across Australia.
In turn, he said, this would allow for more soft plastic material to be put to good use.
"If state and federal governments were to change some of the regulatory framework, so that it's more advantageous for councils, hospitals, governments to encourage people to take recycled plastic products … there would be a significant increase in the use of this type of material."