Kentucky Ag Connection - Logan Aluminum Cuts Ribbon on Initial Expansion

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Logan Aluminum Cuts Ribbon on Initial Expansion
Kentucky Ag Connection - 11/13/2017

Gov. Matt Bevin congratulated local officials and executives from Logan Aluminum Inc. and its parent companies today on the opening of the aluminum plant's phase I expansion in Logan County, as well as the groundbreaking of phase II of the project.

Together the expansions represent about $407.6 million in new investments, which are creating about 250 full-time jobs at the sprawling mill in southwest Kentucky.

"Logan Aluminum is a standard bearer of growth and foresight in its industry, and we are thankful for its decision to expand in Kentucky," said Bevin. "Logan Aluminum is no stranger to diversification, making large-scale investments to increase beverage-can sheet production while simultaneously meeting an ever-increasing demand for automotive-grade aluminum sheet metal. Because of companies like Logan Aluminum, Kentucky is truly becoming the engineering and manufacturing center of excellence in America. We look forward to seeing how Logan Aluminum will continue benefiting Logan County and its surrounding communities."

Officials cut the ribbon on phase I of the expansion, a project originally announced in 2015. Logan Aluminum's $240 million investment expanded the recycling/new ingot casting capabilities. A new 280,000-square-foot building will produce approximately 600 million pounds of cast ingot annually. The investment also increased capacities of its rolling mills, scalping and pre-heating operations. The company announced an additional $42.6 million investment would prepare the plant to manufacture thicker-gauge aluminum for other products including automotive sheet. The Phase I is creating approximately 190 jobs.

This past May, the company announced the project's second phase, a $125 million, 65,000-square-foot cold rolling mill expected to create 60 full-time jobs. With the official start of construction underway today, the new mill will supplement existing cold rolling capacity by Spring 2019. The expansion will add capacity for both beverage can stock and heavier gauge rolled sheet for use in automotive body and structural panels.

"Almost two years ago to the day, we held our groundbreaking for the new DC4 Recycle Facility, and now we are here today for the ceremonial ribbon cutting of DC4, and for the groundbreaking of Logan's new Cold Mill - CM4," Logan Aluminum Plant Manger Ken Perdue said. "It's an exciting time for aluminum and it's a really exciting time for aluminum in Kentucky. It's really happening here!"

Logan Aluminum began production in 1983 and is a joint venture between Tri-Arrows Aluminum Inc., headquartered in Louisville, and Novelis Inc., based in Atlanta. The facility accounts for about 45 percent of North American aluminum beverage can production.

Tri-Arrows is a subsidiary of Tri-Arrows Aluminum Holdings Inc. (TAAH). TAAH was established in 2011, and is 75 percent owned by UACJ Corp., 20 percent by Sumitomo Corp., three percent by Itochu Metals Corp. and two percent by Itochu Corp.

Novelis was founded in 2005 when it spun off Alcan Inc., a Canadian mining and aluminum manufacturer. Novelis was acquired by Indian company Hindalco Industries in 2007 and is now part of the Aditya Birla Group. Sen. Whitney Westerfield, of Hopkinsville, praised Logan Aluminum's dedication to excellence and their commitment to the commonwealth.

"I am excited to congratulate Logan Aluminum on the completion of the Phase I expansion," said Sen. Westerfield. "As we celebrate the groundbreaking of Phase II, I want to thank the company for investing over $400 million into our region, creating over 200 new Kentucky jobs. I look forward to the final completion of this project as Logan Aluminum continues to celebrate its successes."

Rep. Jason Petrie, of Elkton, noted the company's long history of success and continuous growth.

"Logan Aluminum has been a pillar of the Russellville business community for 34 years," said Rep. Petrie, who serves on the Economic Development and Workforce Investment Committee. "I congratulate Logan on their tremendous success with this exciting expansion and look forward to the nearly 250 jobs they are offering to the people of Logan County and surrounding communities."

Logan County Judge-Executive Logan Chick expressed appreciation for Logan Aluminum's continued investment and job creation in Logan County.

"Logan Aluminum is an outstanding corporate citizen, and we appreciate their faith and confidence in Logan County," Judge-Executive Chick said.

Lewisburg Mayor Teddy Harper said the operation has a substantial impact on the community.

"Logan Aluminum's continued growth and success means a great deal to Lewisburg," Mayor Harper said. "Their world-class operation and employment helps the entire area."

Russellville Mayor Mark Stratton said the region is fortunate to have Logan Aluminum providing employment opportunities.

"The presence of Logan Aluminum benefits Russellville and the rest of southcentral Kentucky," Mayor Stratton said. "We are blessed to have a top-notch company of their quality in our community. We wish them continued success going forward."

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $5.2 million for phase I and $6.5 million for phase II through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KEDFA approved Logan Aluminum for up to $1.8 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA) for phase I and up to $1.5 million for phase II. KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

Logan Aluminum also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.

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