The council originally let its contract to Lancashire Waste Services in 1993. This merged with SITA last year.
It will open new transfer stations in Lancaster and Blackburn and expand recycling facilities next year at the existing ones in Blackpool and Pendle.
Recycling will start at the new Lancaster transfer station at the start of the contract and this facility will eventually handle all of the city’s waste when the local landfill site is closed.
SITA’s regional director Peter Gilliatt said: “We are pleased that the county council has again put its trust in SITA. The new contract will allow us to look at more sustainable forms of waste management and assist the county to achieve its recycling targets.”
Lancashire produces some 700,000 tonnes of household waster annually, of which around 20 per cent is recycled.
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