Taunton-based waste management company Viridor has expressed "disappointment" over Devon County Council's decision to award a £26.5 million contract to SITA UK.

SITA has won a five-year contract with a four-year extension option to run 16 of the authority's 19 household waste recycling centres across the county.

The move will see the Berkshire-based company, which is five years into a 30-year integrated waste contract with Cornwall Council, take over the Devon operations from Viridor on May 1.

SITAoperates 13 household waste recycling centres across Cornwall. It also manages a landfill facility at Connon Bridge and materials recycling facilities in Bodmin and Pool and is awaiting a planning decision from the Secretary of State on a £117 million waste incinerator at St Dennis, near St Austell.

SITA already manages Devon's £3.8 million recycling centre at Pinbrook Road in Exeter, which opened in June.

Its South West processing general manager James Pike, said it was looking to develop complementary services in the area, including an undisclosed investment in a materials recycling facility in Exeter, where recovered materials will be sorted and baled for selling on as recyclate.

It also aims to increase commercial collections from businesses across the county.

Mr Pike said: "Our plans for a materials recycling facility are taking shape and we are looking at Greendale Business Park in Woodbury Salterton, where we already have some existing facilities."

Viridor currently holds the management contract for 16 local authority waste sites across the county, 15 of which it has subcontracted to Devon Waste Management. DWM subcontracts the staffing of these sites to individual site subcontractors, who directly employ staff.

DWM also holds the contract to run the authority's waste disposal site in Torrington, which did not form part of the recent council tender. A further site, in South Molton, will also continue to operate under an existing contract, by South Molton Recycle.

A SITA spokesman said the company would not be subcontracting the management of the Devon sites when it takes them over in May. He said it would be visiting them and looking into staff transfers under TUPE regulations, over the coming weeks.

Councillor Roger Croad, Devon County Council cabinet member for environment, community and planning, said: "This is a positive announcement for Devon and we're pleased to have SITA UK on board.

"Based on the company's impressive track record at our centre at Pinbrook, we will be keen for the whole county to benefit from the same level of service it has been providing in Exeter."

Richard Jenkins, director of Viridor's South West region, said: "As a Westcountry-based business we were naturally disappointed not to win the contract for managing Devon County Council's household waste recycling centres.

"Whilst we are the incumbent operator, the contract reached its planned expiry date so there will be no discernible impact on our profits this year.

"We will continue to work with Devon County Council as part of our long-term strategic partnership with the authority, including the delivery of the £45 million energy from waste plant in Exeter, which is now under construction."

Earlier this month,Viridor warned it would see a slight fall in profits this year, due to a drop in recyclate prices this winter and an increase in bid costs.

The news came as Viridor announced its acquisition of the Westcountry trade waste collection interests of French multinational Veolia Environmental Services, for £8.2 million.

The deal has seen it take over former Veolia operations in Devon, Somerset and Cornwall, including recycling sites at the Heathfield Industrial Estate in Newton Abbot and the Poole Industrial Estate in Wellington.