Shanks Waste Solutions has signed a £400m contract with Cumbria County Council to build and operate two treatment plants aimed at reducing landfill.
Hespin Wood, near Carlisle, and an as yet unidentified site near Barrow will house the waste treatment plants.
Transfer stations will also be set up near Penrith, at Distington in west Cumbria and Kendal Fell.
The new facilities should save the council £315m in landfill fines over 25 years. The first plant could open in 2011, subject to planning consents.