Building work has started on a new facility for bin lorries to empty their waste before it is collected and taken to processing plants in Dungannon.
The £1.8 million waste transfer station is being developed at the back of the existing recycling centre at Drumcoo.
Woodvale Construction was selected to build the new facility and work is expected to be completed this summer.
Chair of the Mid Ulster Council's Environment Committee, Councillor Ronan McGinley, said: "This is a substantial investment in the Drumcoo site which coincides with the mothballing of the existing landfill site at Tullyvar in Aughnacloy which is reaching the end of its life.
"The new modern facility ensures we have the ability to manage waste arising in the Dungannon area and to do so more efficiently."
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