The UPM Shotton MRF is to sort the waste from nearby Warrington Borough Council.
Paper manufacturer UPM has its MRF in Deeside, North Waste which is 30 miles away from Warrington in Cheshire. The facility was opened last year.
Warrington Borough Council cabinet member for environment and public protection Councillor David Keane said: “This new contract will improve the service provided to residents by allowing them to recycle even more than ever through our blue bin scheme.
“Not only will the council save money through this new contract but we will also be paid more for the recyclables that we collect. All money earned will be reinvested into local services.”
UPM national sourcing manager Mike Burgess said: “We’re delighted to continue to work with Warrington and its partners. Our integrated recycling approach ensures that not only can we recover recyclable materials at a very high rate but we also recycle material on our own site.
“UPM Shotton has been called a benchmark for sustainable manufacturing with reduced CO2 emissions and a focus on minimising waste. We are proud of our long-term partnerships with local authorities.”