STEPHENVILLE, Nfld. — A new five-year contract valued at $1 million, has been given to Newfoundland Envirotire Shreds Inc. for the launch of a used tire-recycling program.

Environment Minister, Kevin Aylward, says that an estimated 500,000 tires are disposed of each year in Newfoundland and Labrador alone, and this project will be an integral part of the overall waste management strategy for the province.

It is expected to create 18-20 full-time positions when the program is in full swing. The company will be responsible for establishing collection sites throughout Newfoundland and Labrador, transporting the tires from these sites to the processing used facility in Stephenville, processing the used tires into marketable products, and selling the finished product.

Since April, tire retailers have been remitting a levy of three dollars on all new passenger and light truck tires with a rim size up to 17 inches, and a nine dollars on tires with larger rim sizes, and Aylward says these levies will be used to cover the administration costs of implementing the program.