MyEco Group Completes Major Restructure to Centralise Production and Cut Costs

Centralising Manufacturing to Boost Efficiency

MyEco Group Ltd (ASX:MCO) has wrapped up a sweeping operational restructure aimed at streamlining production and slashing costs. At the heart of the changes is the consolidation of manufacturing activities into a single, fully integrated facility in Nanjing, China, which now handles compostable resin, film, and bag production. This move involved exiting two manufacturing sites in Malaysia, where equipment was either relocated or sold, and reducing the Malaysian office to a single employee focused on local sales.

Strategic Outsourcing and Cost Discipline

To scale production without heavy capital outlays, MyEco has forged strategic partnerships with multiple outsourced manufacturers across Southeast Asia. This approach not only expands capacity cost-effectively but also adds redundancy to its supply chain, an important buffer against disruptions. Meanwhile, the company has exited the commoditised Mexico resin business and relocated its Melbourne head office to lower-cost premises, trimming fixed and operating expenses.

R&D Relocated to Accelerate Innovation

In a bid to tighten the link between product development and manufacturing, MyEco moved its pilot production equipment from Melbourne to the Nanjing plant. This co-location is designed to reduce the cost of new product trials and speed up scaling innovations to commercial production, potentially enhancing the company’s agility in a competitive sustainable packaging market.

Revamped Leadership to Drive Growth

The restructure also brought a refreshed executive team, with new appointments including a CEO, CFO, Chief Growth Officer, and an internally promoted Chief Operating Officer. The company has created integrated business planning capabilities and combined sales and marketing into a Growth function, aiming for a customer-centric approach. Operations now unify manufacturing, procurement, supply chain, and logistics under one umbrella to optimise execution.

Strategic Focus on MyEco® Brand Expansion

MyEco’s strategic pivot is squarely on its MyEco® branded compostable products, which have become the leading bin liner brand in Australian supermarkets and are gaining traction in the councils sector, which has seen a steady 6.8% CAGR over four years. The company emphasises that the operational changes will underpin margin improvement, scalability, and flexibility while minimising capital needs.

MyEco Group plans to release an FY26 sales update and growth strategy in the coming weeks, which will shed light on how these structural changes translate into financial performance and market expansion.