Recycle South, a prominent Southland recycling company known for employing and supporting workers with disabilities, has announced the closure of its Further Processing Plant at Makarewa with the disestablishment of 5 positions.

The plant, New Zealand's first further processing plant for bale wrap and agricultural plastics, turned the agricultural waste products into reusable plastic resin pellets.

Recycle South general manager Chris Montgomery said the cost of producing pellets at the Further Processing Plant was quite costly, with returns remaining uncertain.

(L-R) Between the Domes Catchment Group project leader Laurie Selbie, Agrecovery commercial manager Richard Carroll, Recycle South general manager Hamish McMurdo and Thriving Southland catchment co-ordinator Clare Officer check out recycled bale wrap in July 2023. Photo: Supplied

"There needs to be more effort put into finding the best market for it," Montgomery said.

"We just don't have the resources to be able to do all that."

"It needs more dedicated resources to get the best out the market."

"It's not our core business," he said.

Montgomery said the company would now refocus its priorities, continuing to deliver essential services while supporting workers with disabilities - which has always been its core purpose.

Recycle South employs around 100 people and processes curbside recycling from both the Southland District and Invercargill City before on-selling to global markets.

The closure of the Further Processing Plant is expected to be completed by the end of April with all affected staff transferred to the company's Ettrick Street operation.

The Recycle South board will now put the Makarewa plant on care and maintenance while considering its options, which may include selling the plant as a going concern.