More than 130 jobs to be created in Shrewsbury as work starts on £70m Veolia plastics plant
Work has begun on a £70 million plastics plant in Shrewsbury which is set to create more than 100 jobs.
French firm Veolia said it plans to build its biggest UK plastics recycling project with a £70m investment in Shropshire which will include a UK-first “tray to tray” closed loop recycling facility in Shrewsbury.
Construction on the facility on a former industrial site in Battlefield has already begun, with the company confirming plans for the site to be operational by early 2026.
The facility is being built in the former Stadco works, which closed down in 2018 with the loss of 200 jobs. The site was sold two years later for more than £8m.
The plant will sort around 80,000 tonnes of mixed plastics annually, collected from homes and businesses across the country, which Veolia said will contribute to a "significant reduction in carbon emissions" compared to products made from new materials.
Based in a former industrial works, the new facility will shred, wash and flake PET plastic from trays and bottles, which can then be recycled into food grade, low carbon, new packaging.
The plant will produce a strong, lightweight, and versatile material – PET plastic, or polyethylene terephthalate – widely used for food and drinks packaging, especially in the form of clear, shatterproof bottles.
Veolia said the initiative forms part of the company’s "broader commitment to the circular economy in the UK", with total investments set to reach around £1 billion by 2030.
"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," said Veolia CEO Estelle Brachlianoff.
"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.”
Veolia UK's CEO Gavin Graveson 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, and go well beyond the 2.2 million tonnes of plastic packaging recycled 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.”
