New York City has signed a 20-year contract with locally based Hugo Neu Corp. to process residential recyclables. The city Sanitation Department will collect the materials and deliver them to Hugo Neu. The contract calls for Hugo Neu to finance the construction of a $25 million processing facility in Brooklyn. The plant is expected to open in 2007. The city says the deal will save about $20 million annually when compared to what it has been paying to recycle glass, metal and plastic. In 2002, the city quit recycling glass and plastic because of budgetary woes, but has since resumed the services.