Accusations are flying ahead of a court hearing over plans to build a plastic recycling factory at Moss Vale, in the New South Wales Southern Highlands.

Earlier this year the Independent Planning Commission (IPC) rejected RePoly, formerly Plasrefine's, state-government backed project.

The IPC's decision is now being appealed in the Land and Environment Court.

In its first statement to the ABC since the project was proposed five years ago, the RePoly said it was the target of fearmongering.

"Unfortunately, a small group has been spreading misinformation and creating unnecessary fear among local residents," a spokesperson said in a statement.

"This has misled the public and caused reputational harm to our company.

"However, we are encouraged that many residents now understand the fac

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