Veolia unveils first closed-loop PET recycling plant in Shropshire in UK

UK – Veolia, a leading resource management company in the UK, has launched a US$94.4 million project to establish the nation’s first closed-loop polyethylene terephthalate (PET) recycling facility in Battlefield, near Shrewsbury, Shropshire.

The state-of-the-art plant, set to be operational by early 2026, will transform used plastic trays and bottles into food-grade packaging, marking a significant step toward a circular economy.

The facility will process approximately 80,000 tonnes of mixed plastics annually, sourced from households and businesses nationwide. 

By shredding, washing, and flaking PET plastics, the plant will produce high-quality, low-carbon materials for new packaging, bolstering the UK’s grocery sector. 

According to Veolia, using recycled plastics could reduce carbon emissions by up to 70% compared to virgin materials, aligning with national net-zero goals.

“This innovative facility advances our commitment to reducing waste and carbon emissions while meeting the growing demand for effective recycling as Simpler Recycling legislation takes effect,” said Veolia CEO Estelle Brachlianoff in a statement. 

“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 project, part of Veolia’s US$1.3  billion investment plan by 2030 to enhance sustainable resource management, is expected to create over 130 permanent jobs in Shropshire, alongside additional roles during construction. 

The initiative addresses a critical gap in the UK’s recycling infrastructure, as stringent regulations have previously limited closed-loop PET tray recycling due to the complexity of ensuring food-grade purity.

In a statement, Gavin Graveson, CEO of Veolia UK, emphasized the project’s significance amid industry challenges.

“At a time when some players are exiting the plastics recycling market, innovative domestic facilities like this are crucial. There’s vast potential to grow the UK’s plastic recycling beyond the current 2.2 million tonnes annually.”

Recent updates highlight the project’s alignment with the UK’s Simpler Recycling legislation, which mandates businesses with over 10 employees to separate recyclable materials, including plastics, by March 31, 2025, with households following by March 31, 2026. 

A report by industry analysts suggests that escalating the Plastic Packaging Tax could further drive investments in recycling infrastructure, potentially unlocking US$1.4 billion for new facilities.

Beyond plastics, the company is expanding low-carbon initiatives, including a new process to treat PFAS-containing fire suppressants, reinforcing its commitment to environmental innovation.

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