Penn-Northwest Development Corp., Mercer County’s lead economic development agency, was awarded the funds on behalf of Austin Rubber Co. LLC. The loan from the Pennsylvania Industrial Development Authority is for 10 years at 3 percent interest.
The company is seeking to create a manufacturing plant in Sugar Grove Township in the area where ILSCO Extrusions operates. The total cost of the project was pegged at $6.635 million.
Austin Rubber is a startup company that plans to manufacture recycled rubber. The operation will use an insolvent process, on which it has, to recycle rubber.
The system converts recycled tires and other scrap rubber materials into a less expensive substitute for virgin rubber compound, which can be used in a variety of new products, according to the company’s website.
Based in Austin, Texas, Austin Rubber was founded as a wholly-owned subsidiary of Green Source Holdings LLC.