Landowners in Victoria will have to pay for a multimillion dollar clean-up after the discovery of tens of thousands of tonnes of previously unknown recycling stockpiled at sites rented by failed recycling company SKM.

After fires at its facilities and environmental sanctions, SKM last month told 30 local councils it could no longer accept their recycling and are now unable to clean up the waste sitting in these storage units. 

Under a state government contingency plan to amend the multi-million dollar mess, up to 60% of that recycling is being sent to landfill, with the remainder being handled by other industry players.