Dangerous flammable building cladding will be turned into products for the building industry as the Morrison government pumps more money into recycling technology to meet a looming 2022 deadline on waste exports.

A Melbourne company has been funded with $2.9 million to develop a commercial use for the massive haul of flammable building cladding, which is being stripped from hundreds of Victorian buildings.

Australia exported around 4.5 million tonnes of waste in financial year 2018-19. Credit:Jason South

A Sydney firm has also received $2 million to develop technology to convert contaminated waste plastic into reusable packaging and new products. Both are working with universities on three-year projects to commercialise their technology.

Industry, Science and Technology Minister Karen Andrews said the government backed projects that could create commercial markets for products that limit waste generation.