The service will be used by 204,000 residents providing recycling, waste collection and management of household waste recycling centres.
The seven-year contract begins in March 2010 with the possibility of a seven-year extension.
May Gurney Environmental Services managing director Nicola Peake said: “The council appointed us because of our ability to transform their recycling and waste services. They have called it a ‘recycling revolution’ to deliver long-term environmental benefits and value for money.”
It now means that the company is providing recycling services for a total of 18 local authorities and 1.5 million households.