Waste newsprint from Mortons Print in Lincolnshire will be sent to the Palm Paper mill in Kings Lynn for recycling.
The contract includes a £50,000 investment by Palm Recycling for the installation of recycling equipment at the mill.
Waste will be segregated to reduce the level of manual handling and further reduce costs.
Palm Recycling commercial and marketing manager Richard Waterson said: “With levels of production increasing at Mortons, Palm Recycling was asked to propose a solution to improve recovered paper rates, increase revenues and introduce greater levels of automation.
“Our answer was to deliver a bespoke management system that allowed Palm Recycling to handle all of Mortons’ recycling requirements including a quality automated system that is fully maintained and serviced. This provides Mortons with an end-to-end solution with maintenance and service included for total peace of mind, allowing Mortons to focus on core business, which is printing.
“With over 55 per cent of recovered newsprint exported from the UK, this contract is great news as the recovered fibre will remain in the UK supply chain supporting British industry.”
Meanwhile, Palm Recycling has also been revealed as the latest member of the Resource Association trade organisation.
Resource Association chief executive Ray Georgeson said: “The Resource Association is delighted to welcome Palm to our ranks. As a major player in the recycling supply chain with their strategically important newsprint manufacturing facility in Norfolk and integrated collection business, Palm is a very welcome addition to the growing membership of the association.”
Palm Recycling managing director Ron Humphreys said: “Palm Recycling has been supportive of the development of the association as we believe it has an important role to play in championing the value of the modern reprocessing and recycling sector in which we play our part. We look forward to playing an active role in the development and the life of the association.”