Veolia invests £70m to build UK's first closed-loop PET recycling facility, advancing sustainability and supporting national circular economy goals.
Veolia, one of the UK’s foremost resource management companies, has announced a landmark £70 million investment to develop the nation’s first “tray-to-tray” closed-loop recycling facility. Located in Battlefield near Shrewsbury, Shropshire, the facility is a central part of Veolia’s wider vision to build a sustainable circular economy in the UK, with the company planning to invest around £1 billion across various initiatives by 2030.
This pioneering facility will be the first in the UK capable of recycling PET (polyethylene terephthalate) plastic trays back into food-grade packaging—an operation long considered technically challenging due to the high standards required for food safety. While PET bottles are commonly recycled, PET trays have posed significant challenges due to differences in their composition and contamination levels. By leveraging its global recycling expertise, Veolia is now bringing this technology to the UK market.
The Shrewsbury site, currently under construction and expected to begin operations in early 2026, will process approximately 80,000 tonnes of mixed plastics each year, sourced from households and commercial sectors nationwide. Using a comprehensive method involving shredding, washing, and flaking, PET plastics will be transformed into high-quality, low-carbon packaging materials. This transformation process is expected to deliver a substantial reduction in carbon emissions, as recycled plastic production typically results in up to 70% less CO2 emissions compared to virgin plastic manufacturing.
The announcement of this groundbreaking project coincided with French President Emmanuel Macron’s state visit to the UK, underlining the strategic partnership between Veolia’s French parent company and its UK operations. This initiative is part of Veolia’s broader GreenUp plan aimed at modernizing resource recovery infrastructure while bolstering local communities and industrial resilience in the UK.
In addition to the Shrewsbury PET plant, Veolia is progressing with several other sustainability-driven investments. These include the extension of a district heating network in Southwark to serve 5,000 homes using heat from the SELCHP (South East London Combined Heat and Power) energy recovery facility. Furthermore, the company is investing in new processes to handle and recover hazardous waste, such as solvents, enhancing both environmental safety and carbon efficiency.
Veolia is also responding proactively to regulatory shifts. In advance of the UK's July 1, 2025, ban on aqueous film forming foam (AFFF) fire suppressants containing PFAS (per- and polyfluoroalkyl substances), Veolia has launched an innovative treatment solution to handle these hazardous materials safely and sustainably.
Estelle Brachlianoff, CEO of Veolia Group, highlighted the importance of this development: “This project marks a major step forward for the UK’s recycling capabilities. As the first closed-loop PET tray recycling plant in the country, it reinforces our commitment to reducing carbon emissions and supporting the upcoming Simpler Recycling legislation. It also strengthens our role as a leader in the circular economy.”
Gavin Graveson, CEO of Veolia UK, emphasized the urgency of innovation amid challenging market conditions: “With multiple recycling businesses struggling due to weak market demand and economic uncertainty, the UK urgently needs advanced, homegrown solutions. The UK produces 2.2 million tonnes of plastic packaging annually, and tapping into this resource through sustainable recycling is key to achieving net-zero goals. We urge the government to support initiatives like ours with robust incentives and an increase in the Plastic Packaging Tax to maintain industry momentum.”
