Veolia has announced plans to build a new plastics recycling facility in Shropshire as part of a wider £1 billion UK investment by 2030. The site will be the first in the UK capable of recycling PET food trays back into food-grade packaging.
A new £70 million plastics recycling facility is set to open in Battlefield, Shropshire, with the aim of boosting the UK’s domestic recycling capacity. Led by Veolia, the project will be the first in the country to introduce a “tray-to-tray” closed-loop process for polyethylene terephthalate (PET), a common type of plastic used in food packaging.
The facility, expected to be operational by early 2026, will process up to 80,000 tonnes of plastic annually and create over 130 permanent local jobs. It will use advanced technology to convert used PET trays and bottles into food-grade materials, a process not previously available in the UK due to strict purity requirements.
The announcement coincides with French President Emmanuel Macron’s state visit to the UK and forms part of Veolia’s broader £1 billion investment plan to support the circular economy. Other ongoing projects include district heating expansion in Southwark and new hazardous waste treatment capacity.
Veolia says the new site will help reduce reliance on virgin plastics and support the UK’s net zero targets. However, the development comes at a challenging time for the recycling sector, with several operators scaling back due to economic pressures and low market demand.
Industry figures have called for stronger policy support to ensure recycling infrastructure keeps pace with regulation. Veolia has urged the UK Government to enhance incentives, including reforming the Plastic Packaging Tax, to help sustain momentum.