France's Veolia launches $95 million plastic recycling project in Britain

French environment services provider Veolia VIE has invested 70 million pounds ($95 million) to build its largest yet plastic recycling facility in Britain, it said on Wednesday.

Construction has already begun and the facility is expected to be operational by early 2026. The project is part of a wider investment plan set to reach around 1 billion pounds by 2030, Veolia said.

"There is significant potential to grow the plastic recycling market, with 2.2 million tons of plastics out on market each year in the UK," Gavin Graveson, CEO of Veolia UK, said in a statement.

The company said the facility would be the first closed-loop recycling plant in Britain.

Closed-loop technology allows recycling of PET trays into food grade materials, which Veolia hopes will bolster supply in the British grocery industry.

"We would welcome the government's support in maintaining this momentum with the right incentives, including a timely and meaningful escalation of the current Plastic Packaging Tax," Graveson said.

($1 = 0.7364 pounds)