Terre Haute, Indiana – Tire pyrolysis and recycled carbon black (rCB) manufacturer Pyrolyx USA has obtained approval for up to $70 million (€63 million) in bonds to finance the building of a second tire recovery plant in Terre Haute.
The Terre Haute Economic Development Corp. approved the issuance of the solid waste facility revenue bonds in December, and the City of Terre Haute gave its approval in January, according to Pyrolyx USA CEO Thomas Redd.
"The maximum amount of the bonds is $70 million, but... we are expecting the actual amount borrowed to be less than this," Redd said.
Pyrolyx estimates the construction of the second Terre Haute plant at $52 million.
The company aims to break ground on the facility in the first quarter of 2020, and have it operational in the second quarter of 2021.
"We have not closed financing on plant 2 yet, so the schedule assumptions are dependent on that successful financing close," Redd said.
When completed, the second Pyrolyx plant will have a production capacity that is identical to the existing Terre Haute plant, which is 13,000 tonnes of rCB annually, according to Redd.
The company expects the new plant to bring 50 new jobs and $2.5 million in annual payroll to Terre Haute, he said.
In November, Munich-based Pyrolyx AG signed a five-year agreement with the Continental Corp.’s tire division to provide up to 10 kilotonnes of of rCB to Conti tire plants globally.
Redd said he could not comment directly on Pyrolyx's agreement with Conti or how it affected the decision to build the second Terre Haute plant.
"However, the additional capacity that the second plant in Terre Haute represents will be sold to customers in the US and abroad," he said.