Aluminum company to expand in Todd County, create 140 jobs

The recycling project will also help the environment

FRANKFORT, Ky. (WTVQ) – Aluminum producer and recycler Novelis will move forward with the expansion of Phase 2 of its recently opened operation in Todd County with an investment of approximately $ 365 million for build a new recycling center that will create 140 jobs for local residents.

“As we continue to rebuild in Western Kentucky, businesses are committed to creating quality employment opportunities for Kentucky families,” Governor Andy Beshear said in announcing the project. “I was fortunate enough to join Novelis on the grand opening of the company’s automotive aluminum refinishing plant just over two months ago, and the decision of its executives to move forward. forward quickly with expansion plans is great news. Novelis is proving to be an ideal solution for Todd County and the surrounding area, and I look forward to seeing the business continue to grow for years to come.

Novelis will build a new sheet metal ingot casting, crushing and recycling center with an annual capacity of 240,000 tonnes to serve the automotive market.

The new facility – which will be located next to the existing automotive refinishing plant on Old Railroad Lane in Guthrie – is expected to reduce Novelis’ carbon emissions by more than one million tonnes each year and allow the company to expand its auto recycling programs in North America. .

Using recycled aluminum as a raw material requires only 5% of the energy used to make primary aluminum, thus avoiding 95% of the carbon emissions associated with production.

The announcement of the expansion comes just over two months after Beshear joined Novelis for the inauguration of the automotive aluminum finishing plant in late October. This facility included an investment of more than $ 300 million and the creation of more than 150 jobs, including 100 Kentucky residents. Novelis also operates a 130-employee beverage can recycling facility in Berea which opened in 1989. The Madison County facility melts and molds ingots from 20% of the nation’s recycled beverage cans.

“We are excited about this new investment in Kentucky, which will help Novelis meet its sustainability goals, as well as support the carbon reduction goals of our automotive customers,” said Tom Boney, executive vice president and president of Novelis North America. “The Commonwealth of Kentucky has been an excellent trading partner for many years and has a strong, highly skilled workforce to meet the growing need for high strength, low carbon aluminum. We look forward to deepening our relationships with community leaders to ensure our establishment has a lasting and beneficial impact in the region. “

Atlanta-based Novelis recycles and produces aluminum worldwide, with 33 advanced rolling and recycling facilities in nine countries in North and South America, Europe and Asia. The company employs around 14,650 people worldwide.

More than 225 vehicle models use Novelis’ aluminum alloy, and the company’s products are also used to make a variety of products, including beverage cans, airplanes, computers, cellphones, flexible tubes. , insulating sleeves, license plates and architectural products, such as roller shutters. , awnings, roofs, gutters, facades and sandwich panels.

Kentucky is home to more than 230 metals-related facilities, which employ approximately 25,000 Kentuckians. In 2021, the Kentucky metals industry announced more than 1,700 full-time jobs with $ 975 million in new investments.

Todd County Judge / Executive Todd Mansfield thanked the company for its commitment to the region.

“We are delighted to support and celebrate the growth and success of Novelis in our region with this major expansion. With this good news, Novelis continues to demonstrate its confidence in Todd County and southwest Kentucky, ”said Judge / Executive Mansfield. “We appreciate their significant investment and the support and leadership provided by Governor Andy Beshear, the Cabinet for Economic Development and the Tennessee Valley Authority to ensure this expansion happens in Guthrie, Todd County, Ky. “

Guthrie Mayor Jimmy Covington is looking forward to a long-term partnership with Novelis.

“On behalf of the citizens of Guthrie and Guthrie City Council, we express our sincere gratitude to Novelis for their investment in our community and the hundreds of job opportunities available to families in Todd County,” said Mayor Covington . “We look forward to continuing to work with our partners to ensure the success of Novelis in our community for generations to come. “

Southwest Kentucky Economic Development Director Carter Hendricks said Novelis will continue to grow thanks to the region’s strong business climate.

“The Southwestern Kentucky region is proud to be the birthplace of Novelis and this expansion. We know that the workers in our region and the exceptional support from local, state and regional leaders paved the way for Novelis and their continued success in Todd County and Southwestern Kentucky, ”said Hendricks. “We look forward to working with local and corporate leaders at Novelis to meet all of their needs and to ensure the company benefits from our diverse and growing workforce, a conducive business environment and ‘an incredible quality of life. “

Todd County Industrial Foundation Chairman John Walton said Todd County will benefit greatly from the continued growth of Novelis.

“Novelis has been a blessing to our community since their initial investment, as their local and corporate leaders are now part of the fabric of our community and have given generously to important causes,” said Walton. “We are delighted that they have chosen the Guthrie site for further expansion and opportunity. We realize this project means an even greater commitment and investment from the company, which will create even more opportunities for businesses and individuals in Todd County and southwest Kentucky.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Tuesday preliminary approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $ 5 million in tax incentives based on the company’s investment of $ 364.2 million and annual targets of:

  • Creation and maintenance of 138 full-time jobs for residents of Kentucky over 15 years; and
  • Pay an average hourly wage of $ 38, including benefits for these jobs.

Additionally, KEDFA has approved Novelis for up to $ 4 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows licensed companies to recoup Kentucky sales and use tax on construction costs, construction equipment, equipment used in research and development, and electronic processing.

By meeting its annual goals over the term of the agreement, the business may be eligible to retain a portion of the new tax revenue it generates. The company can claim eligible incentives for its income tax and / or employee contributions.

In addition, Novelis may receive resources from Kentucky Labor Service Providers. These include free recruitment and placement services, personalized training at reduced cost, and job training incentives.

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