Freightways Invests $2.7 Million In Rubbish Solution To Building Supplies Shortage

Freightways has made a $2.7 million investment in SaveBOARD, an innovative solution that upcycles packaging waste into construction board.

The cash has enabled SaveBOARD to open a plant in Te Rapa, which became fully operational at the end of last year and is now converting up to 4000 tonnes of waste per year into approximately 200,000 desperately needed construction boards.

The investment is not only commercial but the right thing to do according to Freightways CEO Mark Troughear. It converts materials like Tetra Pak and fast food cartons, which were previously not recyclable, into building board that performs similarly to plywood, oriented strand board and particleboard and can be used indoors and out.

With transport and construction combined accounting for nearly 30% of greenhouse gas emissions in New Zealand[1], Freightways recognised the business as an opportunity to meet needs at both ends.

The listed company sees SaveBOARD as a means to achieving a number of goals. It is able to offer its clients a way to deal with waste within their own businesses, maximise efficiency on its existing waste collection services and accelerate its goal of a 50% reduction in carbon emissions by 2035.

“One of Freightways’ core principles is to take ownership and solve problems through action. We’re in the business of getting things done now, rather than relying on suppliers and customers to come up with solutions.

“Through the Australian arm of our companies Shred-X and Med-X, we already divert over 98% of our collected waste from landfill.

“SaveBOARD provided an exciting proposition in that it offered both a reliable and clean method of disposal for hard to recycle waste – things we already collect and shred through our business units like Tetra Pak cartons and fast food packaging – and delivered a viable finished product that is much needed in the New Zealand building industry,” says Troughear.

Spearheaded by Paul Charteris, SaveBOARD uses patented Smart Technik technology to convert waste that previously could not be recycled in New Zealand including fibre and poly-coated packaging like coffee cups, carton board and soft plastic waste into world-class products.

Initial backing in 2020 from Freightways in the form of a $1.1 million loan was later converted into a 22 per cent shareholding in November 2021 after significant interest was generated in the venture.

“The technology has seen incredible uptake offshore from leaders wanting to demonstrate green solutions to building. For example, Tesla opted to use SaveBOARD for the membrane substrate of its 200,000 square-metre roof of the Gigafactory One, which has saved 2,000 tonnes of waste from landfill.

“Locally we have phenominal interest in our first run, and we need less than 1 per cent of the market here to reach our initial capacity,” says Paul Charteris of SaveBOARD.

Freightways also encouraged SaveBOARD to add a wash/dry line to its production facility, a crucial element missing from many recycling facilities resulting in recyclable – but contaminated – materials heading to landfill. The wash/dry line is now operational after receiving funding from Callaghan Innovation.

The Government has a widely circulated goal of reaching Carbon Zero by 2050 and cutting emissions by half before 2030.

Many in the delivery business have promised 100 per cent recyclable packaging by 2025, but for Freightways, the time to take action is now. The company has backed its initial commitment to SaveBOARD with an additional $1.6 million to help establish the business model in Australia, and the New South Wales Government has subsequently provided AU$1.74 million in funding for the business.

“With both the transport and construction sectors being large contributors to carbon emissions, we wanted to invest in a solution that would make an impact to both. We saw the huge potential of SaveBOARD early on and, with our name behind it, many other investors have followed suit,” says Freightways Chief Executive Mark Troughear.

“Investing in SaveBOARD made sense for Freightways as the perfect complement to our current collection and destruction service offering, creating a circular economy for those collections from right now – not by 2025, or by 2050.”

Recycling isn’t new to the Freightways portfolio, The Information Management Group (TIMG) manages document destruction and large scale paper recycling, but this investment is a key step towards its goal of having zero landfill products.

“Our investment strategy hinges on increasing efficiencies and creating a circular economy; we’re actively seeking out solutions that work with complementary waste streams, finding a way to reuse product in a meaningful way – at a scale that creates real impact, ” says Troughear.

[1] https://www.rnz.co.nz/news/national/440352/nz-greenhouse-gas-emissions-agriculture-energy-sectors-biggest-contributors-in-2019

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