Coca-Cola Enterprises Ltd (CCE) has entered into a partnership with the UK-based Eco Plastics to set up a recycling facility to process plastic bottles.
The £15-million plant will come up Eco Plastics' its site near Gainborough.
According to the CCE the plant would allow the UK to process 75,000 tonnes of polyethylene terephthalate per year, up from 35,000.
According to the Department of Environment, Food and Rural Affairs (Defra) the scheme was ''an innovative blueprint for the future.''
The project forms part of a 10-year joint venture between the two companies, which would see Eco guarantee an annual supply of recycled plastic to CCE.
According to CCE, which is contributing £5 million for the project, the facility would allow the firm to hit its target of 25-per cent recycled polyethylene terephthalate (PET) in all its plastic packaging in Britain by 2012.