The firm has bought a Warwickshire site from local specialist Pure Recycling for up to £7m.
The Ettington site is under construction but will be one of the country’s biggest material recycling facilities, able to process 25t of waste an hour, when finished next year.
Kier will pay the owners an initial a cash down payment of £2m followed by a second sum of up to £5.1m when the site is completed.
Kier chief executive, Paul Sheffield said: “We are delighted with the acquisitions which strengthen Kier’s waste management and recycling business.
“It will leave the group well placed to take advantage of future market growth in the sector.”
He added: “In particular, we look forward to working closely with local authorities and councils to help them to achieve their recycling targets.”