Kentucky’s Aluminum Industry Sees Explosive Growth
New demand from the automotive industry has propelled the surge in Kentucky’s aluminum industry, with total aluminum-related corporate investment reaching $2.6 billion across 90 announcements since 2014.
2017 Auto/Aero Site Guide
In the classic Dustin Hoffman film The Graduate, a well-meaning neighbor pulls aside young Benjamin Braddock at his college graduation party to offer a little career advice.
“Just one word,” he says, oozing with certainty. “Plastics…There’s a great future in plastics.”
If the film were remade today, perhaps set in Kentucky, chances are the commodity recommended would be “aluminum.” That’s because as the federally mandated fuel economy regulations, known as CAFE standards, grow more stringent, automakers are increasingly turning to lighter-weight aluminum for body panels, structural components, mechanical parts, and housings. While aerospace manufacturing, construction, and consumer goods are significant drivers, new demand from the automotive industry has propelled the surge in Kentucky’s aluminum industry.
The latest example emerged in May when Tri-Arrows Aluminum Inc. unveiled a 60-job, $125 million Phase II investment at the already massive Logan Aluminum Inc. rolling mill it jointly owns near Russellville, Kentucky. That came atop the 190-job, $250 million Phase I expansion at Logan, announced in 2015 and currently under construction. The projects are preparing Logan to make automotive-grade, flat-rolled sheet, while continuing to service the beverage can market.
Just the month earlier, Braidy Industries Inc. rocked the state with an announcement of its planned $1.3 billion rolling mill in northeast Kentucky’s Greenup County to serve primarily the automotive and aerospace industries.
“In my 24 years of public service, [Braidy Industries] is the project I have waited for,” Greenup County Judge-Executive Robert Carpenter said after the deal was announced in April. “This project will change the entire region going forward.”
The Industry’s Range
A recent market report from the Kentucky Cabinet for Economic Development counts nearly 200 aluminum- related facilities in Kentucky, employing more than 20,000 people. The sector is broad, with smelters, recyclers, rolling mills, injection molders, extruders, die-casters, machine shops, and companies manufacturing a galaxy of finished products including Reynolds Consumer Products in Louisville, which makes the world’s supply of aluminum foil.
Other companies that have announced investments in the state, or plans to do so, include Constellium- UACJ, Gibbs Die Casting, Kobe Aluminum Automotive Products, Kobe Steel, Novelis, Rane (Madras) Ltd., UACJ Whitehall, and Pride Industries. This growth brings Kentucky’s total aluminum-related corporate investment to an eye-popping $2.6 billion across 90 announcements since 2014.
Project Announcements
Bunge Expands Avondale, Louisiana, Operations
09/03/2024
Austria-Based Voestalpine Roll Forming Expands Jeffersonville, Indiana, Operations
09/03/2024
MARSHALLTOWN Plans Wyandotte County, Kansas, Operations
09/03/2024
India-Based Welspun Expands Grove City, Ohio, Operations
09/03/2024
Provalus Plans Walnut Ridge, Arkansas, Operations
09/03/2024
C&J Industries Expands Meadville, Pennsylvania, Operations
09/03/2024
Most Read
-
19th Annual Area Development Gold and Silver Shovel Awards
Q2 2024
-
What the Latest EPA PFAS Rule Means for Site Due Diligence
Q3 2024
-
Semiconductors’ Fragile Relationship With Water May Be Tested
Q3 2024
-
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
Q3 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
Mitigating Site Risks for Industrial Projects
Q3 2024