Yorwaste is to process residual waste from a construction contract undertaken by contractor Kier.
Richmondshire District Council in Yorkshire appointed Kier in 2011 to undertake refurbishment of its council house stock.
Kier has a commitment to recycle 94 per cent of the waste. The remaining 6 per cent of non-recyclable waste will be sent to Yorwaste in York where it will be used as a cement kiln fuel.
Kier regional director Mike Furze said: “Kier is committed to recycling, and reducing its environmental impact is a key target for the whole company.
“The amount of waste going to landfill nationally is constantly increasing and as a result landfill sites are filling up.
“We are dedicated to using regional suppliers like Yorwaste who will ensure none of our waste goes to landfill. At Kier, we recognise the importance we have as a business to recycle and the effect it can have on the local environment.”