Recycler to pay $80,000 over fire safety failures

A recycling company that failed to manage fire risks and breached EPA permission conditions at three factories in Melbourne’s south-east will pay $80,000 into EPA Victoria’s restorative justice fund.

The payment is part of Re.Cycle Operations Pty Ltd’s enforceable undertaking, a legal agreement with EPA that will also see it improve its fire risk management practices. 

Re.Cycle will also run community and industry forums on the risks of putting batteries and other hazardous materials into mixed recycling, as well as significantly improving training for its staff in fire prevention and environmental compliance.

EPA Southern Metropolitan Regional manager Viranga Abeywickrema said the company’s poor practices contributed to a fire in 2024, but acknowledged it had upgraded facilities and procedures since then.

Enforceable undertakings are voluntary, legally binding agreements that can be used instead of criminal or civil proceedings to the benefit of the community. If Re.Cycle does not meet its agreement, EPA can start court action.

Mr Abeywickrema said an undertaking could be a positive alternative for the community when companies showed genuine willingness to do more to meet their environmental obligations.

“The community benefits from the restorative justice payment and education forum, while the undertaking drives change and ensures the company meets its obligations to prevent future breaches of the law,” he said.

“The $80,000 will be used to fund a project, or series of projects, benefitting Victorians.

"Re.Cycle has made a substantial commitment to do better, and we will monitor them to make sure they deliver on that commitment.”

Re.Cycle has operated three waste and resource recovery facilities in Melbourne’s south-east from 2022, including a large centre in Thomas Murrell Drive where a fire broke out on February 23, 2024.

"The fact remains that conditions at the factory meant such an incident was all too likely," Mr Abeywickrema said. "This incident should put everyone in the waste industry on notice that breaches of their permit conditions will have serious consequences.”

For more information on dealing with combustible waste, visit EPA Victoria’s page on how to manage fire risk at your business(opens in a new window).

To read the enforceable undertaking in full or find out more about them, visit EPA’s public registers page.(opens in a new window)