Dunedin-based Delta Utility Services Ltd won the Clutha District Council's solid-waste contract last year to provide integrated solid-waste services.
Delta chief executive Grady Cameron said the $4.2 million deal with Clutha District Council was "a flagship" contract.
The tender included operation and maintenance of the Mt Cooee landfill, transfer stations and skip sites, as well as the kerbside collection of waste and the introduction of a kerbside-recycling collection.
The contract starts on Sunday.
Delta purchased and delivered the 21-tonne Bomag waste compactor to the Mt Cooee site last week, and Mr Cameron said it would go a long way towards improving environmental performance at the landfill.
Mr Cameron said the $465,000 investment in the German-built compactor was the latest in technology and specifically designed for use at low-volume landfill sites such as Mt Cooee.
"The machine is capable of compacting of waste, clean fill and cover material used to form a cap on the top of the landfill," Mr Cameron said.
"More powerful and more efficient, the compactor will help extend the economic life of the landfill by maximising the remaining space available," he said.
Mt Cooee averages about 10,000 tonnes of disposal waste per year.
The new contract would use only about 10 new employees, because of the level of technology in the industry.
But Delta would make use of local contractors, Mr Cameron said.
The contract was for an initial period of five years, with renewal periods of up to a further four years, and the purchase of the compacter showed the "commitment" Delta had to the contract.
The Mt Cooee facility had consent until about 2023, but Mr Cameron said the new compactor could extend that time, because of its efficiency.
The company was also investing in a side-lift compactor truck that could lift wheelie bins up to 1000 litres, meaning it could deal with residential and commercial loads.
The recycling scheme accepts plastics, metal cans, paper and cardboard at the kerbside.
Delivery of the new yellow recycling bins is almost complete, with Delta staff dropping off remaining bins this week ahead of the Clutha district's first kerbside-recycling collection on Monday.
Detailed information about the service is provided with the bins and on the council's website.
