TERRE HAUTE - A Germany-based company has begun work on a $25 million facility in Terre Haute. Officials with the Pyrolyx Group broke ground Wednesday on what it says will be the most advanced plant of its kind and will create 55 jobs when complete.

The facility will have the capacity to recycle approximately four million used tires each year. The plant will produce nearly 13,000 tons of recovered carbon black, or rCB, which is extracted from the used tires and can be re-used for the production of new tires, dyes, rubber and plastic, according to Pyrolyx.

Pyrolyx says the rCB process will save more than 30,000 tons of CO2 compared to traditional carbon black manufacturing.

"By building its second plant in the USA, the Pyrolyx Group is emphasizing its global expansion plans," Niels Raeder, chief executive officer of the Pyrolyx Group said in a news release. "The increase in its production capacity will uniquely allow Pyrolyx to meet the growing demand for recovered carbon black. Even before construction begins, we have signed long-term purchase contracts for Pyrolyx rCB."

A spokesperson for the Terre Haute Economic Development Corp. tells Inside INdiana Business the new jobs will pay an average wage of $19 per hour. Our partners at WTHI-TV report construction will commence after Labor Day and is expected to be complete by March 2019.

Pyrolyx says the Terre Haute site was chosen because of "favorable logistics" as well as support from the city. The company has another rCB plant in Germany and, when the Terre Haute plant is complete, it will be the first rCB producer to have two international production sites.