Pyrolyx expects the plant to be in operation by May 2019. International construction concern Zeppelin G.m.b.H. is overseeing construction and overall project management at the Indiana site.
The factory's pyrolysis process also will recover oil and steel and save more than 30,000 tons of CO2 annually, compared with traditional carbon black manufacturing, the company claimed.
The U.S. plant underlines the group's global expansion plans, according to Pyrolyx CEO Niels Raeder.
"The increase in its production capacity will uniquely allow Pyrolyx to meet the growing demand for recovered carbon black," Mr. Raeder said.
Earlier this year, Pyrolyx claimed it had signed a 10-year supply agreement with "one of the world's leading" masterbatch producers for product from the Terre Haute plant. It did not identify that producer.
Pyrolyx does business in the U.S. through Pyrolyx USA Inc., an 81/19 joint venture with Reklaim Inc., a Seattle-based firm carrying out pyrolysis-based recycling of tires at a plant in Boardman, Wash. Reklaim claims that facility is capable of handling up to 2 million tires (32,000 metric tons) a year.
Pyrolyx, which was founded in 2009, reported fiscal 2016 operating and net losses of $8.25 million and $9.72 million, respectively, on an 80.7-percent drop in revenue, to $286,739.
Management cited the drop in global oil prices, which fell to a 12-year low in January 2016 and had a negative impact on the sales of recovered carbon black and pyrolysis oil.
The company said in its fiscal 2016 report that it anticipates generating revenue of about $1.1 million from the sale of rCB, pyrolysis oil and steel.
Tire Business editorial staff contributed to this article.