The MRF, which is to be built on Viridors existing Salmon Pastures site, has been designed by Eggersmanns UK sales group Kaizen Recycling.
Equipment such as shredders, magnets, screens, air separators, eddy current separators and optical sorting equipment will sort the waste when the facility is fully operational in January 2010.
Kaizen Recycling sales director Jonathan Fallon said: It is an essential stage in Viridors continual progression to implement high level landfill diversion for a notoriously difficult to separate high volume waste stream. UK waste handlers are struggling to implement effective commercial and industrial waste MRFs so we believe the Sheffield site will prove we have a commercially positive solution.
It will have a capacity to treat 150,000 tonnes of waste each year, recovering ferrous and non ferrous, stone, cardboard, wood, dense plastics and refuse derived fuel.