Veolia builds the UK's first closed-loop PET recycling plant

The plant is expected to process around 80,000 tonnes of plastic per year from the beginning of 2026.
Picture: Veolia

Veolia is building the UK's first closed-loop PET tray recycling plant in Shropshire as part of a £1 billion investment programme by 2030. The project is being realised in response to growing demand for domestic plastic recycling solutions and in line with new recycling legislation, according to a statement.

The plant is being built at the Battlefield site near Shrewsbury on an existing, disused industrial site with an investment of £70 million and is expected to process around 80,000 tonnes of plastic per year from the beginning of 2026. The conversion of used PET trays and bottles into food-grade packaging promises CO₂ savings of up to 70 per cent compared to virgin material. More than 130 permanent jobs are to be created.

Investment with political symbolism

The announcement was made at the same time as French President Emmanuel Macron's state visit to the United Kingdom and is an example of Veolia's commitment to ecological transformation. The company's other current projects include the expansion of a heating network in London and the processing of PFAS-containing fire extinguishing agents before a corresponding ban comes into force in July 2025.

Veolia emphasises the importance of industrial policy

Estelle Brachlianoff, CEO of Veolia, explained that the move was part of the company's GreenUp plan. The plant should help to strengthen recycling structures and reduce CO₂ emissions. Gavin Graveson, CEO of Veolia UK, also called for political support, for example by making the Plastic Packaging Tax more effective, in order to maintain the momentum for innovative domestic recycling solutions.

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Source: Veolia