Veolia To Build UK's First Innovative Closed-Loop Recycling Facility As Part Of £70M Plastic Push And £1B Investment By 2030

• £70M investment to transform an existing, disused industrial facility to a state of the art plastics sorting and recycling facility at Battlefield, Shropshire.
• 80,000 tonnes of plastics will be processed every year.
• Over 130 permanent local jobs will be created in addition to the construction jobs required to upgrade the existing site.
• Announcement coincides with French President Emmanuel Macron’s state visit to the UK

Veolia, a leading resource management company in the UK, launches its biggest UK plastics recycling project with a £70M investment which will include the country’s first “tray to tray” closed loop PET¹ recycling facility in Battlefield near Shrewsbury, Shropshire. Construction on the facility has begun, with plans for the site to be operational by early 2026. This initiative forms part of the company’s broader commitment to the circular economy in the UK, with total investments set to reach around £1B by 2030.

The UK does not have a closed-loop facility to recycle PET trays into food grade materials due to the difficulty in achieving the required standards. Veolia has used its world-leading expertise to bring this technology to the UK’s domestic recycling industry. The innovative Shrewsbury facility will shred, wash and flake PET plastic from trays and bottles to be recycled into food grade low carbon new packaging, bolstering supply in a boost to the UK grocery industry.

The plant will sort around 80,000 tonnes of mixed plastics annually, collected from homes and businesses across the country, and will contribute to a significant reduction in carbon emissions, as using recycled plastic can save up to 70% of the CO₂ that would otherwise be associated with the use of virgin materials.

The investment was announced during French President Emmanuel Macron's state visit to the UK. It's part of the French Group’s continuous efforts to advance the circular economy in the UK for the benefit of local populations and resilience of the country's businesses. Other investments currently coming on stream include the extension of a district heating network to 5,000 homes in Southwark, delivering heat from the SELCHP energy recovery facility, alongside investment to process and recover solvents and other hazardous waste, delivering further carbon savings.

Veolia also launched a new process for the treatment of aqueous film forming foam (AFFF) fire suppressants containing PFAS^* (Per- and polyfluoroalkyl substances) ahead of a UK ban that came into force on 1 July 2025.

^*PFAS substances included in the Environment Agency approved process are:
Perfluoro-1-hexanesulfonic acid (PFHxS)
Perfluoro-1-octanesulfonic acid (PFOS)
1H, 1H, 2H, 2H-perfluorooctane sulfonic acid (6:2 FTS)
Perfluorobutanoic acid (PFBA)
Perfluoropentanoic acid (PFPeA)
Perfluorohexanoic acid (PFHxA)
Perfluoroheptanoic acid (PFHpA)
Perfluorooctanoic acid (PFOA)
Perfluorononanoic acid (PFNA)

More information on Veolia PFAS operations here (https://www.veolia.com/en/our-media/press-releases/veolia-targets-1-beu-revenue-2030-fight-against-micropollutants-pfas) and here (https://www.veolia.com/en/solutions/beyondpfas-veolias-new-end-end-pfas-offer).

¹ Polyethylene Terephthalate

Estelle Brachlianoff, Chief Executive Officer, Veolia said: “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. 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. This innovative facility not only advances our commitment to reducing waste and carbon emissions but also positions us to meet the growing demand for effective recycling as Simpler Recycling legislation comes into effect, ensuring more of this material is responsibly recycled for years to come.”

Gavin Graveson, Chief Executive Officer, Veolia UK added: “At this critical time for the plastics recycling industry, with a number of players exiting the market due to low end market demand and macroeconomic concerns, it is crucial that the UK has innovative domestic recycling facilities. There is significant potential to grow the plastic recycling market, with 2.2 million tons of plastic packaging put on the market each year in the UK. Building a world-leading, profitable circular economy is essential—not only to create jobs but also to support the nation’s net zero ambitions. We would welcome the UK Government’s support in maintaining this momentum with the right incentives, including a timely and meaningful escalation of the current Plastic Packaging Tax.”