As part of the deal, Palm has invested £50,000 installing recycling equipment at Morton's Horncastle-based facility.

Waste will be transferred to Palm Paper's mill in Kings Lynn; the two companies believe that around 1,000 tonnes pa will be collected through the contract.

Morton's collection system segregates waste and reduces manual handling of the newsprint.

According to Mortons' chief executive Ian Fisher, production levels at the printer are increasing and the contract will reduce the company's costs, as well as improving its recycling rate.

He said: "Having been a long-standing customer of Palm Paper’s high quality recycled newsprint, this partnership seemed the obvious choice especially with the advice and flexibility Palm Recycling offers."

Richard Waterson, commercial and marketing manager at Palm Recycling added: "With over 55% of recovered newsprint exported from the UK, this contract is great news as the recovered fibre will remain in the UK supply chain supporting British industry."