Veolia invest £70 million in disused, closed-loop recycling facility

Veolia has unveiled its largest UK plastic recycling project with a £70 million investment. The project includes the transformation of a disused industrial building into the country’s first “tray to tray” closed-loop PET (Polyethene Terephthalate) recycling facility, located in Battlefield near Shrewsbury. Construction has already begun, with the site expected to be operational by early 2026.

This investment forms part of the Plastic Push initiative as the company solidifies its commitment to the circular economy in the UK, with investment expected to reach around £1 billion by 2030. Currently, the UK doesn’t have a closed-loop facility to recycle PET trays into food-grade materials. Using expertise from around the world, Veolia is bringing this technology to the UK’s domestic recycling industry.

Once operational, the new Shrewsbury facility will shred, wash, and flake PET plastic from trays and bottles to be recycled into food-grade, low-carbon new packaging that will boost the supply for the UK grocery industry. The plant is expected to sort around 80,000 tonnes of mixed plastics annually, which will be collected from homes and businesses around the country. As a result, there will be a significant reduction in carbon emissions as utilising recycled plastic can save up to 70% of the CO2 otherwise associated with the use of virgin materials.