Viridor has issued Interserve with a notice of termination on its Energy from Waste (EfW) project in Glasgow.
Work on the £154 million Glasgow Recycling and Renewable Energy Centre scheme began in 2013.
However, the project had been hit by a series of delays, resulting in Interserve making £70m of provisions on the contract.
Plans for the centre include processing up to 200,000 tonnes of waste annually and is designed to prevent around 90% of waste going to landfill.
In a statement, Interserve said: "We are assessing the implications of this development with our legal advisers and will issue a further update in due course."
(LM)
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