The announcement of the 12-month contract is the latest in a trend which has seen a growing portion of the industry move away from spot trading and instead develop long term collaborations, and advancing the circular-economy model.

These deals allow companies like Eco Plastics to invest in the creation of new technology, further developing the UK's waste infrastructure.

A spokesperson for Eco Plastics told Packaging News negotiations were ongoing for around six months, and the deal would see delivery of 500,000,000 bottles in 2014.

Eco Plastic's Hemswell facility reprocesses 35% of the bottles collected in the UK every year.

Around 35% of Eco Plastics' feedstock is now supplied through longer partnerships, with a target to reach 70% by the end of 2014. With a capacity to process 150,000 tonnes annually, there is additional scope for Eco Plastics to enter further agreements.

Jonathan Short, deputy chairman of Eco Plastics said the agreement is strategically significant and part of a plan to offer more strategic, long term partnerships to key suppliers.

"Buying material on the spot market can at times deliver robust prices, but it provides very little certainty over future revenue levels. Crucially that makes it difficult to raise the finance necessary to invest in new technology, which in turn means that there are still valuable resources which can't currently be recycled domestically.

"As it becomes more and more difficult to export our waste material overseas, we're left with a choice between building new infrastructure and going back to landfill. We see an industry wide move to longer agreements as the fundamental to resolving that dilemma."

Herman van der Meij, director of Viridor Resource Management, said practical partnerships and cross-sector collaborations are essential to move towards a real circular economy.

"This deal shows leading businesses working together across the value chain, from goods manufacturing, retail, collection and sorting to reprocessing and remanufacture."

Nick Brown associate director for Coca-Cola Enterprises said the FMCG giant was pleased with how its partnership with Eco Plastics is helping transform recycling in the UK.

"It shows how leaders in the waste management industry are evolving to grasp the opportunities offered in a more circular economy and will act as reassurance to householders & Local Authorities that the domestic recycling industry is thriving."