Veolia to construct £70 million closed-loop plastics recycling facility close to Shrewsbury

Useful resource administration firm Veolia has launched its greatest UK plastics recycling undertaking with a £70 million funding which is able to embody the nation’s first “tray to tray” closed loop PET recycling facility in Battlefield close to Shrewsbury, Shropshire.

Building on the ability has begun, mentioned the group in a 9 July announcement, with plans for the location to be operational by early 2026. The initiative types a part of a broader dedication to the round economic system within the UK, mentioned the group, with whole investments set to succeed in round £1 billion by 2030.

The UK doesn’t have a closed-loop facility to recycle PET trays into meals grade supplies as a result of problem in attaining the required requirements, and the group mentioned it “has used its world-leading experience to convey this know-how to the UK’s home recycling business”. The progressive Shrewsbury facility will shred, wash and flake PET plastic from trays and bottles to be recycled into meals grade low carbon new packaging, bolstering provide in a lift to the UK grocery business.

“The plant will kind round 80,000 tonnes of combined plastics yearly, collected from properties and companies throughout the nation, and can contribute to a big discount in carbon emissions, as utilizing recycled plastic can save as much as 70% of the CO2 that may in any other case be related to the usage of virgin supplies.”

The funding was introduced throughout French President Emmanuel Macron’s state go to to the UK. Stated a press launch: “It’s a part of the French Group’s steady efforts to advance the round economic system within the UK for the advantage of native populations and resilience of the nation’s companies”.

Different investments mentioned to be approaching stream embody the extension of a district heating community to five,000 properties in Southwark, delivering warmth from the SELCHP vitality restoration facility, alongside funding to course of and get better solvents and different hazardous waste, delivering additional carbon financial savings.

Veolia additionally launched a brand new course of for the therapy of aqueous movie forming foam (AFFF) fireplace suppressants containing PFAS forward of a UK ban that got here into pressure on 4 July 2025.

Estelle Brachlianoff, CEO of Veolia mentioned: “As we speak’s announcement marks a serious milestone for the UK recycling business and a key pillar of Veolia’s GreenUp plan to drive sustainable useful resource administration. By changing into the primary firm within the UK to recycle PET trays via a completely closed-loop course of, we’re reinforcing our management as a pioneer of the round economic system. This progressive facility not solely advances our dedication to lowering waste and carbon emissions but in addition positions us to fulfill the rising demand for efficient recycling as Less complicated Recycling laws comes into impact, making certain extra of this materials is responsibly recycled for years to return.”

Gavin Graveson, Chief Government Officer, Veolia UK added: “At this crucial time for the plastics recycling business, with quite a lot of gamers exiting the market as a consequence of low finish market demand and macroeconomic considerations, it’s essential that the UK has progressive home recycling amenities. There’s important potential to develop the plastic recycling market, with 2.2 million tons of plastic packaging positioned in the marketplace every year within the UK. Constructing a world-leading, worthwhile round economic system is crucial—not solely to create jobs but in addition to assist the nation’s web zero ambitions. We might welcome the UK Authorities’s assist in sustaining this momentum with the best incentives, together with a well timed and significant escalation of the present Plastic Packaging Tax.”