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.
