The award builds on Severnside's existing recycling contract for Tesco, and full details of the award are expected to emerge within the next few weeks.
However, in a radically different approach to waste management in the retail sector, the contract is expected to see Tesco seeking to reduce or end the use of landfill and instead focusing on recycling, waste minimisation and other alternative routes for the waste materials.
Valuable
The Tesco waste contract is currently held by the Wastelink Group, and is expected to be taken on by Severnside in the second half of 2005. The contract is thought to be the most valuable ever let within the UK retailing sector and has been the subject of stiff competition among a number of companies.
Tesco has more than 1,000 sites, and the work will present a major challenge and opportunity for Severnside, which has diversified strongly from its traditional paper recycling work into facilities management over the past few years.
The work will also include handling food waste under the Animal By-Products Regulations.
Severnside Recycling is owned by the St Regis Paper Company, which is in turn part of the DS Smith Group.
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