Hydro Aluminum Metals USA Upgrades-Expands Henderson, Kentucky, Plant
The investment will support the installation of a new homogenization furnace to improve the facility’s ability to meet specifications within the automotive market, as well as a new baghouse, a state-of-the-art dust and gas collector to reduce air emissions, which will boost post-consumer scrap volume and allow the company to recycle a broader range of materials. Work is expected to begin in August and be completed by September 2024.
“At Hydro we want to accelerate the green transformation of the aluminum and automotive industries by increasing our use of post-consumer scrap to pull more used material into the value chain and promote a circular economy, while also delivering our automotive customers advanced, high-strength alloys,” said Trond Gjellesvik, vice president of Hydro. “As carmakers continue to make metal substitution decisions, particularly for electric vehicles, our investments allow us to support our forward-leaning customers in reaching their climate ambitions.”
“Henderson is on a roll, and Hydro’s investment is just the latest in a series of exciting announcements bringing quality jobs and new opportunities for families in this community,” said Governor Andy Beshear. “From the I-69 Ohio River Crossing to landing the largest economic development project in Western Kentucky in 25 years, this is an exciting time for Henderson and the entire region. I want to thank Hydro’s leadership for their continued investment in Kentucky and our workforce, and I look forward to seeing the company’s continued success for years to come.”
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved the company for up to $1 million in tax incentives through the Kentucky Reinvestment Act (KRA) based on the company’s investment of at least $8.8 million and retention of up to 56 full-time jobs at an average hourly wage of $49.80, excluding benefits. KRA is designed to help companies make significant capital investments to become more competitive, retain employment and increase productivity and efficiency.
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 assess.
“Henderson Economic Development is proud to highlight Hydro Aluminum’s investment at the Henderson facility. This investment is beneficial for the competitive product market for the automotive industry and the commitment to the community with a focus on clean initiatives,” added Whitney Risley, director of existing industries and workforce development at Henderson Economic Development. “We appreciate the forward thinking of Hydro Aluminum. It is encouraging to see the continued growth in our existing industries.”
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