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Area Development - Site Selection, Facility Planning and Workforce Development

Hydro Aluminum Metals USA Expands Henderson, Kentucky, Operations

06/03/2024
Hydro Aluminum Metals USA, a producer of recycled aluminum products, plans to expand its manufacturing operation in Henderson, Kentucky. The $85 million project is expected to create 31 jobs.

The investment will include an additional 80,000 square feet, allowing the company to introduce HyForge technology to its existing facility and serve the automotive market’s need for smaller diameter, high-quality billets that can be forged directly into high-quality automotive components. The expansion is scheduled for completion in 2026.

“This investment is another step along Hydro’s journey to change the game in aluminum production. Recycling more end-of-life scrap reduces emissions, strengthens security of supply and enables us to deliver new, cutting-edge products to our U.S. customers, made right here in Kentucky,” said Hydro President and CEO Eivind Kallevik. “Hydro Henderson has been at the forefront of producing recycling-based automotive products for nearly 20 years. We work closely with the automotive industry, and introducing Hydro’s HyForge technology will provide Hydro and our partners with a greener advantage. Made in America.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $85 million and annual targets of: creation and maintenance of three Kentucky-resident, full-time jobs across 10 years; and paying an average hourly wage of $40.50 including benefits across those jobs.

“Kentucky businesses are constantly finding ways to grow, innovate and further establish the commonwealth as a destination that can support any industry,” noted Governor Andy Beshear. “Hydro Aluminum’s investment will further support the ever-growing and -changing automotive market, and I am thrilled to see this innovative technology make its way to Kentucky. I want to thank the company’s leadership for continuing to invest in the Henderson community and look forward to their ongoing success.”

Additionally, KEDFA approved Hydro for up to $150,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). 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.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

“They have continued to retool and advance new products in the automotive sector. We appreciate their continued growth and involvement in the Henderson community,” added Whitney Risley, Henderson Economic Development director of existing industries.

Hydro converts natural resources into valuable products for customers across a range of industries. The company currently operates 140 locations in 40 countries. Hydro produces aluminum in North America via two business units, Hydro Aluminum Metals and Hydro Extrusions.

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