The contracts are aimed to recycle 40,000 tonnes of commingled material collected each year in north London, an amount which is expected to rise to 70,000 tonnes by 2014.

Both Bywaters and Greenstar UK will sort for recycling materials such as tetrapaks, mixed plastics, plastic shopping bags and shredded paper. The NLWA said that it will save GBP760,000 because of these contracts.

NLWA chair Cllr Clyde Loakes said: “In the current climate getting the best value solution for managing waste has to be a priority and we are delighted that through these contracts we have been able to achieve this.”