Asda has awarded a two-year contract to Veolia Environmental Services to manage the recycling of 180,000 tonnes of cardboard each year.
Veolia is the UK's largest waste management company and has been handling the material alongside running a number of environmental initiatives with Asda from the start of the month.
Price and collection arrangements were thought to be key to Veolia winning the contract, which was formerly held by Birmingham-based packaging reprocessor Smurfit Kappa.
Asda will deliver the card to seven regional recycling centres where Veolia will take over the card which is then sent to "a variety of different markets" - both European and domestic.
Veolia already handles residual waste on behalf of Asda under a contract signed earlier this year as well as providing packaging compliance services to the retail giant.
Veolia also announced this week that it had already helped Asda to divert 99 per cent of waste away from landfill sites at stores in Horwich and Bootle.
Shane Monkman, packaging buyer for Asda, said: "We have a massive responsibility to reduce our impact on the environment.
"Over the last 10 years we've developed a successful working relationship with Veolia as part of our waste strategy, and we look forward to this continuing.
"With their strong understanding of the business and their appreciation for the complex global environment in which we operate, there's no doubt that Veolia will add tremendous value in helping us to recycle even more of the UK's cardboard market," he said.
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