Veolia to build UK's first closed-loop recycling facility in Shrewsbury
Shrewsbury is set to become a beacon of circular economy innovation with the commencement of construction on Veolia's new £70 million plastics recycling facility in Battlefield.
This groundbreaking project will establish the UK's first "tray-to-tray" closed-loop PET (Polyethylene Terephthalate) recycling plant, a significant leap forward for domestic recycling capabilities. The facility is expected to be operational by early 2026.
The investment, part of Veolia's broader commitment to inject around £1 billion into the UK's circular economy by 2030, was notably announced during French President Emmanuel Macron's state visit to the UK, highlighting its national importance.
Currently, the UK lacks a closed-loop facility capable of transforming PET trays back into food-grade materials due to the stringent standards required. Veolia, leveraging its world-leading expertise, is bringing this advanced technology to the UK.
The Shrewsbury plant will revolutionise plastic recycling by shredding, washing, and flaking PET plastic from both trays and bottles. This processed material will then be recycled into new, low-carbon food-grade packaging, providing a crucial boost to the UK grocery industry's sustainable supply chains.
The facility is projected to sort approximately 80,000 tonnes of mixed plastics annually, collected from homes and businesses nationwide. This will not only divert a substantial amount of waste from landfill but also contribute significantly to carbon emission reductions, with recycled plastic saving up to 70% of the CO2 associated with virgin material production.
Estelle Brachlianoff, CEO of Veolia, commented, "This 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."
She added that the facility is strategically positioned to meet the growing demand for effective recycling as the "Simpler Recycling" legislation comes into effect, ensuring more material is responsibly recycled for years to come.
Gavin Graveson, CEO of Veolia UK, emphasised the critical timing of the investment. "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." He highlighted the significant potential to expand the plastic recycling market beyond the current 2.2 million tonnes of plastic packaging recycled each year in the UK, underscoring the importance of government support to maintain this momentum.
This Shrewsbury development is one of several Veolia investments underway in the UK. Other initiatives include the extension of a district heating network in Southwark, powering 5,000 homes with heat from the SELCHP energy recovery facility, and new processes for treating hazardous waste, including aqueous film-forming foam (AFFF) fire suppressants containing PFAS, ahead of a UK ban that commenced on July 1, 2025.
The new facility is expected to create over 130 permanent local jobs in addition to those required during its construction, providing a significant economic boost to the Shrewsbury area and reinforcing the UK's commitment to a more sustainable, circular future.
