New York — New York City announced on Tuesday that it has signed a 20-year agreement with locally based Hugo Neu Corp. to process the city’s residential recyclabes, according to published reports. Under the terms of the contract, Hugo Neu will a $25 million recyclable processing facility in Brooklyn. The plant is expected to open by the end of 2007, according to reports.

According to The New York Times, New York Mayor Michael Bloomberg said the plan would allow the city to "save about $20 million a year from what it currently pays to recycle its metal, plastic and glass. Part of these savings come from the contract’s sliding scale, which ties the city’s recycling future to the shifting and complicated markets for metal, glass and plastic."

The contract calls for the city’s Sanitation Department to collect the recyclables and deliver them to Hugo Neu, according to reports. Two years ago, the city stopped recycling glass and plastic because of budgetary woes, but has since begun collecting the materials again.