Waste management company, Aus Blue Bins (ABB) was able to establish the facility through grant funding of more than $947,000 secured via the Black Summer Bushfire Recovery Grants program.

ABB also is contributing an additional $403,000 to the project.

The Coolongolook facility acts as a collection point for the waste material before being forwarded to the company's south Kempsey site for processing and recycling.

The operation enables the recycling of materials that may have previously gone straight into landfill, offering members of the public the convenience of depositing their waste directly at the Coolongolook site.

"Any building company, any skip bin company, any member of the public can bring their waste here," ABB Midcoast CEO, Erin Matthews said.

"We weigh the waste, we analyse the contents and do all the reporting for the EPA, and then it gets bulked up and goes to the facility in south Kempsey where it's repurposed into new products."

Those products include recycled bricks, road base, and gypsum for agricultural use.

Member for Lynne, David Gillespie described the project as a "win-win" situation, based on it contributing to the local economy while helping to lessen the environmental impact associated with waste materials from the construction industry.

"This recycling is just good business, it's good environmentally, it's good for lifting production, and it stops councils having to build new big waste dumps, because this system can process 200,000 tonnes of gypsum a year," Dr Gillespie said.

While the recycling operation is a boon for the environment, ABB also estimates the process will expand, thereby requiring increased employment of local workers.

"The more skip bin companies and builders come in, the more jobs it produces," Ms Matthews said.

"We are hoping to grow this and expand it, and the more waste we can collect from the local area, the more flow-on effect we can have," she said.

"We want to leave a legacy of improving the environment and helping our communities along the way."