Norse Commercial Services has struck a deal with a local authority in the Midlands which the company claims could see up to £25m flowing back into the Norfolk economy.

The 10-year, £50m agreement with Daventry District Council will see the formation of Daventry Norse, which will deliver services including waste and recycling collection, litter-picking and street sweeping from next June.

An independent study last year estimated that every million pounds Norse added to turnover represented a gross added value impact of around £500,000 to the Norfolk economy, while the agreement will lead to an expansion of back-office teams at Norse's Norwich headquarters.

Norse Commercial Services managing director Dean Wetteland said: 'We are extremely pleased to have completed the signing of this latest partnership. The agreement is great news for Norfolk, bringing additional revenue into the county and greater profit share for our Norfolk County Council partners.

'It clearly shows the long-term financial strength of Norse, and the company's sustainability as a leading local employer and major contributor to the Norfolk economy. As the company continues its impressive growth, the area will benefit from the opportunities for additional jobs at our head office in Norwich, and the added value that this and our local procurement spend creates.'

Sales director Geoff Tucker said the company had already recorded a 'highly successful' first six months of the year.

'We had already added over £30m of forward orders, including a £12m recycling contract in our Kent partnership Medway Norse, new education sector cleaning deals with in Suffolk, Devon and Hampshire, and schools catering in East Anglia. With the Daventry Norse agreement in place, we have now put on an additional £83m this year.'

Finance, HR, administration, sales and marketing teams are poised to grow at Norse to deliver the additional services.

'The expansion has meant that we have been able to offer our supervisors, managers, graduate trainees and apprentices opportunities to gain experience in other functions, and to work on specialist projects,' added Mr Wetteland.

Parent company Norse Group is a member of the EDP/EADT Top 100 list of Norfolk and Suffolk's biggest companies by turnover.