The Tim Hortons restaurant chain has begun recycling its used cups into new take-out trays.

With paper product maker CKF Inc. the Canadian-based chain developed a process that converts hot beverage cups into take-out trays used at Tim Hortons restaurants and other products, effectively closing the loop on the company's cup recycling process in Nova Scotia, the company said in a news release.

Over the past two years, Tim Hortons has been working with Scotia Recycling Ltd. to collect cups at all 156 traditional Tim Hortons restaurants across Nova Scotia and deliver them to CKF. Initially cups were blended with other waste papers and made into a variety of paper products, helping divert Tim Hortons cups from municipal landfills across the province.

The cup-to-tray program is operating in the Nova Scotia cities of St. John's, Newfoundland and Labrador, and the company intends to roll it out across the rest of the province and New Brunswick in the coming year. The company said the program has the capacity to recycle 100 percent of its annual cup inventory.

"Having this process of turning used cups into recyclable trays and diverting those cups from landfills is a great success and one we are proud of," said Greg Smith, senior manager, regional marketing - Atlantic Canada, for Tim Hortons.