£70M investment to transform a disused industrial site in Shropshire into the UK’s first closed-loop PET tray recycling facility.
80,000 tonnes of plastic processed annually, reducing carbon emissions by up to 70% compared to virgin plastic use.
Over 130 permanent local jobs created, supporting regional development and advancing Veolia’s £1 billion UK circular economy plan by 2030.
Veolia has begun construction on the UK’s first “tray-to-tray” closed-loop PET recycling facility, marking the launch of its largest UK plastics project to date. The £70 million ($90 million) investment will transform a disused industrial site in Battlefield, Shropshire, into a state-of-the-art plastics sorting and recycling plant, expected to be operational by early 2026.
This facility represents a major leap for the UK’s recycling industry, allowing for food-grade PET plastic trays—traditionally unrecyclable domestically due to quality constraints—to be processed and returned to market in a closed loop. Veolia’s proprietary technology will enable the shredding, washing, and flaking of PET trays and bottles to produce high-grade recycled material for low-carbon food packaging.
“Today’s announcement marks a major milestone for the UK recycling industry and a key pillar of Veolia’s #GreenUp plan to drive sustainable resource management,” said Estelle Brachlianoff, CEO of Veolia. “By becoming the first company in the UK to recycle PET trays through a fully closed-loop process, we are reinforcing our leadership as a pioneer of the circular economy.”
The plant will process approximately 80,000 tonnes of mixed plastics annually, sourced from households and businesses across the UK. By using recycled plastic rather than virgin materials, the facility is expected to reduce CO₂ emissions by up to 70%, aligning with broader national and corporate climate goals.
The investment was formally announced during French President Emmanuel Macron’s state visit to the UK, underscoring Veolia’s Franco-British commitment to driving circular economy innovation. The £70 million project is part of Veolia’s broader UK strategy to invest £1 billion in sustainability-focused infrastructure by 2030.
Beyond plastics, Veolia is also expanding its low-carbon energy and waste solutions, including the extension of a district heating network to 5,000 homes in Southwark using energy from the SELCHP recovery facility, and new investments in hazardous waste treatment and solvent recovery.
With over 130 permanent jobs to be created in Shropshire—plus additional roles during construction—Veolia’s initiative signals a strong vote of confidence in the UK’s green industrial future.
Read the full press release here.
Follow ESG News on LinkedIn
