Germany-based Pyrolyx AG and its Pyrolyx USA subsidiary have signed an agreement to purchase the assets of Newport, Indiana-based J&R Recycling for $4.5 million. The purchase is expected to close in August 2019.
The J&R Recycling plant in Newport, Indiana, was constructed by Illinois-based J&R Used Tire Service in part to feed the under-construction Pyrolyx USA plant in nearby Terre Haute, Indiana.
The Newport facility is being built to provide Pyrolyx with a reliable supply of scrap tires and will allow Pyrolyx to offer retail stores and tire manufacturers a “cradle to grave” approach, according to the firm.
Pyrolyx, which is focused on developing the industrial production and application of recovered carbon black (rCB), says it is nearing the completion of its own facility and expects it to begin operating by June 30, 2019. When fully operational, the facility will be able to produce around 13,000 metric tons of rCB per year, extracted from some 4 million scrap tires each year, says the firm.
The $4.5 million is expected to help quicken the pace of construction and increase the possibility of building a second plant at the same location.
Pyrolyx also has announced it is continuing to restructure its German operations, which includes closing the company’s Munich, Germany, headquarters and transferring much of its global activity to its United States-based operation.
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