Veolia has commenced construction on the UK’s first closed-loop PET tray recycling facility, marking a significant milestone in its UK plastics initiatives. The £70 million investment will transform a disused industrial site in Battlefield, Shropshire, into an advanced plastics sorting and recycling plant, anticipated to be operational by early 2026.
This facility signifies a major advancement for the UK’s recycling industry, enabling the processing of food-grade PET plastic trays, which have traditionally been unrecyclable domestically due to quality constraints. Veolia’s proprietary technology will facilitate the shredding, washing, and flaking of PET trays and bottles to produce high-grade recycled material suitable 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 utilising recycled plastic instead of virgin materials, the facility is expected to reduce CO₂ emissions by up to 70%, aligning with broader national and corporate climate objectives.
The investment was formally announced during French President Emmanuel Macron’s state visit to the UK, highlighting Veolia’s Franco-British commitment to advancing 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, alongside additional roles during construction, Veolia’s initiative demonstrates a strong commitment to the UK’s green industrial future.
Read the full press release [here](https://www.veolia.com/sites/g/files/dvc4206/files/document/2025/07/pr-veolia-investment-announcement-uk-07092025.pdf).
