Veolia to build UK's first innovative closed-loop recycling facility

Veolia, a leading resource management company in the UK, launches its biggest UK plastics recycling project with a £70 million investment which will include the country’s first “tray to tray” closed loop PET recycling facility in Battlefield near Shrewsbury, Shropshire. Construction on the facility has begun, with plans for the site to be operational by early 2026. This initiative forms part of the company’s broader commitment to the circular economy in the UK, with total investments set to reach around £1 billion by 2030.

The UK does not have a closed-loop facility to recycle PET trays into food grade materials due to the difficulty in achieving the required standards. Veolia has used its world-leading expertise to bring this technology to the UK’s domestic recycling industry. The innovative Shrewsbury facility will shred, wash and flake PET plastic from trays and bottles to be recycled into food grade low carbon new packaging, bolstering supply in a boost to the UK grocery industry.

The plant will sort around 80,000 tonnes of mixed plastics annually, collected from homes and businesses across the country, and will contribute to a significant reduction in carbon emissions, as using recycled plastic can save up to 70% of the CO2 that would otherwise be associated with the use of virgin materials.

The investment was announced during French President Emmanuel Macron's state visit to the UK. It's part of the French Group’s continuous efforts to advance the circular economy in the UK for the benefit of local populations and resilience of the country's businesses. Other investments currently coming on stream include the extension of a district heating network to 5,000 homes in Southwark, delivering heat from the SELCHP energy recovery facility, alongside investment to process and recover solvents and other hazardous waste, delivering further carbon savings.

Gavin Graveson, Chief Executive Officer, Veolia UK, said: At this critical time for the plastics recycling industry, with a number of players exiting the market due to low end market demand and macroeconomic concerns, it is crucial that the UK has innovative domestic recycling facilities. There is significant potential to grow the plastic recycling market, with 2.2 million tons of plastic packaging put on the market each year in the UK. Building a world-leading, profitable circular economy is essential—not only to create jobs but also to support the nation’s net zero ambitions. We would welcome the UK Government’s support in maintaining this momentum with the right incentives, including a timely and meaningful escalation of the current Plastic Packaging Tax.

Veolia also launched a new process for the treatment of aqueous film forming foam (AFFF) fire suppressants containing PFAS (Per- and polyfluoroalkyl substances) ahead of a UK ban that came into force on 1 July 2025.