Paper merchant Newport Paper has purchased of the majority of assets of North East Recycling enabling the company's ability to tender for larger contracts with local authorities and waste management firms
Matthew Hoare, managing director at Newport Paper, said: "The collection of commercial recyclate at source compliments Newport Papers traditional services of collecting, processing and selling material from local authorities and waste management companies perfectly.
"With this enhanced collection operation, our materials recovery facility, on-site sorting bays and exclusive contracts with world's leading reprocessors, Newport Paper is well positioned to grow in the future."
The Shropshire-based company will build on North East Recycling's 20 years of experience of collecting cardboard, plastics and cans from printers, shops, businesses and schools in the region to develop Newport Paper North East Limited.
Newport Paper North East Limited will be based at Blaydon near Gateshead, which has been recently opened and will use for the collecting and sorting of commercial waste.
The site will include material sorting, confidential material shredding, material baling and also recycling audits and training.
The depot is being set up as a collection and baling depot, meaning it will operate as a standard paper merchant. The unit is 24,000 square meters with an initial target to recycle 10,000 tonnes of commercial material each year.