Munich, Germany – Recovered carbon black (rCB) manufacturer Pyrolyx AG has progressed the engineering and tendering process of its second plant in Terre Haute, Indiana, the company has announced.
Construction on the unit, which will be build adjacent to the company’s existing facility, is expected to start in the third quarter of this year.
Pyrolyx expects the new plant to be “substantially similar” to its first tire pyrolysis unit, which is near completion, added its 30 April statement.
For the project, the company has raised €2 million in equity capital of Pyrolyx AG at €9.00 per share, and a €4-million loan facility to Pyrolyx USA Inc.
Pyrloyx recently announced a proposed five-year agreement to supply rCB to tire maker Continental Corp.
The non-binding agreement, signed in April, stipulates that supply will build up to 10-15 kilotonnes per annum (ktpa) over two years.
The rCB will be initially supplied both from Pyrolyx’s existing plant in Stegelitz, Germany and its plant in Terre Haute, Indiana.
The supply agreement also requires the development of additional Pyrolyx manufacturing capacity in eastern Europe, to be operational by late 2021.
Pyrloyx is currently in the process moving its headquarters from Munich to its facilities under construction in Terre Haute, the US, where it expects stronger growth potential.
The company has also bought the assets of tire recycling business J&R Used Tire Service Inc, which is currently setting up a tire-shredding facility.
Located in Newport, Indiana, the new processing unit will primarily supply feedstock for the Pyrolyx tire pyrolysis operations.