Under the scheme, paper waste from firms in Swale, Kent, will be collected by Allwaste Disposal and taken to M-real's New Thames Mill in Kemsley for recycling.
Rachel Roberts, M-real development and environmental engineer, said that the scheme would cut trade waste disposal costs for firms in the town.
She said: "The scheme provides an excellent opportunity for local businesses to reduce their environmental footprint, by reducing both the amount of waste they send to landfill and the transport distances associated with their waste disposal and paper supply."
The mill recycles up to 180,000 tonnes from recovered paper every year, equal to 16% of the UK's total office paper waste.
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