Veolia, a UK-based resource management company, has initiated a £70m ($95m) plastics recycling project, featuring the country’s reportedly first ‘tray-to-tray’ closed-loop polyethylene terephthalate (PET) recycling facility in Battlefield near Shrewsbury, Shropshire.
Construction has started, with the site expected to be operational by early 2026.
Once completed, the facility will have a capacity to process approximately 80,000 tonnes (t) of mixed plastics annually, collected from homes and businesses nationwide.
The plant will shred, wash, and flake PET plastic from trays and bottles into food-grade material for new low-carbon packaging, supporting the UK’s grocery industry.
Using recycled plastic is projected to reduce carbon emissions by up to 70% compared to virgin materials.
This project is part of Veolia’s £1bn investment plan by 2030 to advance the circular economy in the UK. It is expected to create more than 130 permanent jobs for locals in addition to the construction jobs.
The initiative leverages the company’s expertise to address the challenge of recycling PET trays into food-grade materials, a process not currently achieved domestically due to stringent standards.
The announcement coincided with French President Emmanuel Macron’s state visit to the UK.
Veolia CEO Estelle Brachlianoff said: “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.
“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.
“This innovative facility not only advances our commitment to reducing waste and carbon emissions but also positions us to meet the growing demand for effective recycling as Simpler Recycling legislation comes into effect, ensuring more of this material is responsibly recycled for years to come.”
