Cheshire East Council has appointed Wates to build a waste recycling centre in Middlewich.
The council claims the facility in Cledford Lane will enable it to bring an end to the landfill disposal of black bin waste in the borough.
The site will be run by contractor Ansa which also handles street waste collection, recycling, parks and road cleaning services for Cheshire East Council.
The council said it is investing £1m in an air treatment system, to ensure the impact of odour from the site is kept to a minimum.
Wates is due to begin the 10-month project on 23 May.