Two south Midlands local authorities have signed a dry recycling contract with paper producer UPM.
UPM will take recovered waste including paper, cardboard, tins, plastics and drinks cartons collected by Cherwell District Council and South Northamptonshire Council.
The company has its own materials recycling facility, which can process up to 270,000 tonnes of comingled waste per year.
Cherwell councillor Nigel Morris said: “Some recyclable materials currently have a high resale value, meaning the new contract will reward the effort residents in the district put into recycling.”
Cherwell will receive an income in excess of £1.5 million from the six-year contract.
Morris added: “The fact that we have been able to secure this for up to six years brings some welcome stability for the service.”