The Terre Haute Economic Development has approved almost US$70 million revenue bonds to finance the construction of a recycled carbon black (rCB) plant in Terre Haute, Indiana, by rCB manufacturer Pyrolyx; however, the company estimates the construction of the second Terre Haute plant will need only US$52 million. Pyrolyx expects to break ground on the facility in the first quarter of 2020 and have it operational by the second quarter of 2021.
When completed, the second Pyrolyx plant is to have a production capacity of 13,000 metric tonnes of rCB annually aside from opening up at least 50 new jobs and providing US$2.5 million in annual payroll to Terre Haute.
While the bonds for Pyrolyx ‘s first Terre Haute plant have a 10-year payback, the company does not yet know the exact terms of the bonds for the second facility. Pyrolyx US CEO Thomas Redd said: “We have not closed financing on Plant 2 yet, so the schedule assumptions are dependent on that successful financing close; but we will be working to have a longer payback period (for the second set of bonds).”
Last November, Germany-based parent company of Pyrolyx US, Pyrolyx AG, signed a five-year agreement with the Tire Division of Continental to supply increasing amounts of rCB to Conti’s tyre plants worldwide. Unfortunately, Redd was unable to comment on Pyrolyx’s agreement with Continental or how it could have affected the decision to build the second Terre Haute plant.