$1.3 billion aluminum plant to be built in Greenup County, Kentucky

Published: Apr 27, 2017 17:28
The new 2.5 million square-foot aluminum mill will be built in nearly 300-acre riverfront site near South Shore in Greenup County.

By Paul Ploumis

SEATTLE (Scrap Monster): Braidy Industries, an American holding company incorporated in Delaware has announced investment of $1.3 billion to construct an aluminum mill near South Shore, Wurtland, in Greenup County, Kentucky. The fully integrated aluminum rolling mill near Ashaland, Kentucky is expected to the most technically advanced mill in the US. The announcement to this effect was made by Gov. Matt Bevin yesterday at an event held in historic McConnell House in Wurtland.

The new 2.5 million square-foot aluminum mill will be built in nearly 300-acre riverfront site near South Shore in Greenup County. The construction of the plant is expected to commence in early 2018. The company hopes that the construction will get completed in 2020. The construction phase is estimated to generate around 1,000 temporary jobs in the region. The company is already on the lookout for additional office space outside the main site. The executives are likely to move into the region in the next few weeks.

Once operational, the plant is expected to provide employment to 550 workers. The advanced manufacturing jobs will have average salaries and benefits of $70,000 per annum, the company stated. The company will partner with Kentucky technical college system to educate the local workers to take up the new jobs offered by the facility. The new facility will have a capacity to produce nearly 370,000 tons of aluminum per year, which will be mainly supplied to automotive and aerospace industries. The mill will mainly focus on Series 5000, 6000, and 7000 aluminum sheet and plate products.

According to Gov. Bevin, the decision to set up the plant in the state is one of the most significant economic deals made in the history of Kentucky. The investment will create enormous opportunity for people in the region, he noted. The recently passed right-to-work legislation has played a significant role in bringing the plant to Kentucky. Without the law in place, the company would have chosen some other location for the massive plant. Incidentally, Kentucky is the 27th state and the last Southern state to enact “right-to-work” legislation.

As per sources, Kentucky Power Company and its parent company, Ohio based American Electric Power were actively involved in negotiations to set up the plant in Greenup County. It is assumed that the electrical company has offered most favorable electrical rates to Braidy Industries, which made the company to choose this as their final location from among 24 bids-12 cities in Kentucky and 12 cities in another state. The close proximity of the location to the Ohio River, rail systems and interstate highways and the presence of key aluminum and auto parts providers were the other reasons that made Greenup County the land for the new facility.

Kentucky will borrow funds up to $15 million for bonds, to help fund the huge project. In addition, the Kentucky Economic Development Finance Authority (KEDFA) has already given preliminary approval for tax incentives up to $10 million to the company through the Kentucky Business Investment Program. Also, Kentucky Skills Network has offered to provide no-cost recruitment and job placement services, along with customized training and incentives.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
6 hours ago
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
Read More
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
Bank of England Governor Bailey sent a clearly dovish signal. He noted that given the current economic weakness, the central bank could tolerate inflation exceeding the 2% target for a period of time. This remark significantly lowered market expectations for a rate hike in June. However, Bailey also warned that once signs of second-round effects emerged, the central bank's tolerance for inflation would diminish accordingly.
6 hours ago
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
6 hours ago
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
Read More
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
The eurozone was facing a broad-based intensification of inflationary pressures. Specifically, the Consumer Price Index (CPI) in France and Spain rose 2.8% and 3.6% YoY in May, respectively, both hitting their highest levels since 2024. Meanwhile, Italy's inflation rate climbed to 3.3%, reaching its peak since 2023, while Germany's core inflation also accelerated to 2.5%. Against this backdrop, ECB Governing Council member Simkus noted that a rate hike in June was almost a foregone conclusion, and that further rate hikes would "very likely" be needed thereafter.
6 hours ago
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
6 hours ago
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
Read More
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
US Fed Vice Chair Bowman noted that it was still too early to judge the impact of the Middle East conflict on US inflation, and that temporary price shocks should be overlooked. However, Kansas City Fed President Schmid argued that it was difficult to continue viewing the current energy price shock as a "transitory" factor, and that officials needed to clearly express their willingness to take necessary measures to maintain price stability. The Fed's Kashkari stated that it was too early to determine whether rate hikes were needed, and that all possible policy options should be kept open. Fed official Paulsen said there had been no structural change in inflation.
6 hours ago