KY: Novelis to Invest $305M, Create 125 Jobs with New Aluminum Plant in Todd County
24 Jan, 2018
Aluminum supplier Novelis Inc. will create 125 full-time jobs with a nearly $305 million investment as it locates a new processing plant in Guthrie to produce automotive-grade sheet, Gov. Matt Bevin announced.
“We are excited to see Novelis, a leader in the global aluminum industry, expand its Kentucky presence and bring new advanced-manufacturing jobs to Todd County,” said Gov. Bevin. “Partnering with companies like Novelis who are investing here for the long term, supports the state’s economy and advances our efforts to make Kentucky the center for engineering and manufacturing excellence in America. We are grateful to Novelis for this tremendous vote of confidence in our workforce and for broadening their footprint in Kentucky.”
Novelis executives plan to build the 400,000-square-foot facility on a 150-acre greenfield site in Todd County to heat treat and pre-treat rolled aluminum coils from nearby Logan Aluminum in Russellville. The plant will include machinery and technology to produce automotive-body-panel-grade aluminum sheet, increasing the company’s global capacity. Novelis leaders expect to break ground in early spring and open by 2020.
“Aluminum is a growing material of choice for the automotive industry worldwide as auto manufacturers continue to demand more and more aluminum to produce lighter, safer and stronger cars, trucks and SUVs,” said Steve Fisher, Novelis president and CEO. “Novelis will continue to innovate alongside our automotive customers to lightweight the vehicles of today while looking ahead to meet the mobility needs of the fleet-based economies of tomorrow.”
Novelis is the world’s largest recycler of aluminum and a top producer overall. It operates 24 advanced rolling and recycling facilities in 10 countries across North and South America, Europe and Asia. The company employs approximately 11,000 people and did $10 billion in revenue in fiscal 2017.
In addition to the automotive industry – where more than 200 vehicle models use its aluminum alloys – customers use the company’s products to manufacture a galaxy of products including beverage cans, computers, mobile phones, flexible tubing, insulating sleeves, license plates, and architectural products, such as roller shutters, awnings, roofing, gutters, facades and sandwich panels.
In Berea, Ky., the company owns a 130-employee recycling facility, which melts and casts ingots from 20 percent of the nation’s recycled beverage cans. A year ago, Novelis announced a $2.35 million investment and 10 new jobs for that plant to expand its capacity by 25,000 tons annually.
Novelis, along with Tri-Arrows Aluminum Inc., jointly owns Logan Aluminum, which employs 1,200 people. Logan Aluminum’s proximity to the Todd County site played a deciding factor in the company’s site selection process.
With increasing demand for aluminum the past several years, particularly from automotive companies as they seek to reduce weight, emissions and fuel consumption, investment in Kentucky rocketed. Since January 2014, aluminum-related companies including Novelis announced nearly 100 new-facility or expansion projects. Those total more than $2.9 billion in corporate investment, well above the approximately $1 billion announced 2001-2013. That growth is creating nearly 3,000 full-time jobs, surging the industry’s employment beyond 20,000 people in Kentucky.
Sen. Whitney Westerfield, of Hopkinsville, shared his support for the project.
“We are excited to welcome this announcement from Novelis for the new processing plant in Guthrie,” Sen. Westerfield said. “The 125 new jobs and $300 million investment will provide new opportunities for our citizens and be a tremendous economic boost for Guthrie and the region. I sincerely appreciate the efforts of Governor Bevin, the Cabinet for Economic Development, the leadership of Judge Greenfield and Mayor Marshall, and of course the folks at Novelis who together helped secure this investment for Todd County.”
Rep. Jason Petrie, of Elkton, said the project will make a large-scale positive impact on the community.
“This job-creating development is a tremendous victory for the people of Todd County,” Rep. Petrie said. “Economic development has been the top priority of the House Republican Majority since we took office in January 2017. Novelis is a renowned producer of aluminum products and their investment of $300 million will be a welcomed addition to our community.”
Guthrie Mayor Scott Marshall noted the long-term impact this announcement could have on the region.
“The City of Guthrie would like to welcome Novelis to our community,” Mayor Marshall said. “Their investment in our community provides a great future for our region. The development of this new manufacturing facility that will be creating new jobs, growth and investment in our region makes our future bright for years to come.”
Todd County Judge-Executive Daryl Greenfield said the project reflects positively on the community’s ability to support new business.
“Todd County is truly excited to welcome Novelis to our community,” Judge-Executive Greenfield said. “Guthrie is the right place to build upon the company’s footprint of another remarkable success. This project speaks volumes about the business and workforce climate of our community. We look forward to the long partnership with Novelis in making Guthrie their new home.”
Mark Lindsey, executive director of the South Western Kentucky Economic Development Council, expressed gratitude toward everyone who made the investment possible.
“The South Western Kentucky Economic Development Council is very excited to welcome Novelis to Guthrie,” Lindsey said. “Our economic development partners across the region have been instrumental during this process and will continue the hard work going forward. This is just the beginning of a life-long relationship with Novelis, and we look forward to their success in our region.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in a special meeting in January preliminarily approved the company for tax incentives up to $8.5 million 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 Novelis for up to $3 million 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.
Novelis will also 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.
For more information on Novelis, visit www.novelis.com.
A detailed community profile for Todd County can be viewed at http://bit.ly/ToddCounty.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2017 totaled a state record $9.2 billion, spurring more than 17,200 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.