KY: Tri-Arrows Aluminum to Invest $125M, Hire 60 in Logan County
31 May, 2017
Gov. Matt Bevin announced that Tri-Arrows Aluminum Inc., which supplies rolled aluminum sheet for beverage cans and automotive uses, will invest $125 million to locate a cold rolling mill at Logan Aluminum Inc. in Logan County, creating 60 jobs in Western Kentucky.
“This investment in Logan Aluminum will have a strong positive impact on Western Kentucky's economy for many years to come,” said Gov. Bevin. “Kentucky’s manufacturing industry is expanding, and Tri-Arrows Aluminum, Logan Aluminum and their partner organizations are on the forefront of industry change and growing customer demand. This new cold rolling mill will help Logan Aluminum and its partners supply manufacturers – both within Kentucky and beyond – with the high-quality materials they need. We are confident that this investment will be transformative for the region, and thank the companies involved for their decision to invest in the Bluegrass State.”
The new mill, which will join an existing cold rolling operation at Logan Aluminum, will add production capacity for both beverage can stock and thicker, higher-alloy rolled sheet for use in automotive body and structural panels. The project comes in response to rising customer demand in both industries.
Company leaders anticipate construction will finish by early 2019, with production of the first coils beginning that spring.
The announcement is a second phase of an ongoing expansion project at Logan Aluminum. Phase one, announced in fall 2015, included 190 new jobs and a $250 million investment in Logan Aluminum’s recycling/new ingot casting facility. That work is adding capabilities and capacity at its rolling mills, scalping and pre-heating operations. Many aspects of the phase-one project are scheduled to begin operation later this year.
Headquartered in Louisville, Tri-Arrows is a subsidiary of Tri-Arrows Aluminum Holdings Inc. (TAAH). TAAH was established in 2011, and is 75 percent owned by UACJ Corp., 20 percent by Sumitomo Corp., three percent by Itochu Metals Corp. and two percent by Itochu Corp.
Logan Aluminum began production in 1983 and is a joint venture between Tri-Arrows and Novelis Inc., which is based in Atlanta. The facility accounts for about 45 percent of North American aluminum beverage can production.
Sen. Whitney Westerfield, of Hopkinsville, expressed gratitude for the efforts of everyone involved with the project.
“We are beyond excited for this expansion at Logan Aluminum near Russellville. A $125 million investment in our community and an estimated 60 new jobs will be a huge boost for the local economy. We appreciate Tri-Arrows and Novelis Inc. for their commitment to Logan County, and we also appreciate Governor Bevin, the Cabinet for Economic Development, and everyone else who played a role in bringing this project to life.”
Rep. Jason Petrie, of Elkton, said the success of the operation encourages additional growth in the community.
“The new jobs and investment coming to Logan County is fantastic news for our local economy,” he said. “Thanks to Tri-Arrows’ massive investment in our community, the livelihoods of 60 families will improve, and we will be well-equipped to continue building a strong manufacturing economy.”
Logan County Judge-Executive Logan Chick noted that the company’s growth affects families across the county.
“Logan County is truly blessed to receive Tri-Arrows’ continuing investment in Logan Aluminum,” he said. “We are very pleased that this world-class, global company is placing their new investment in our community. All Logan County citizens thank them for these new jobs. We are honored to host this progressive company.”
Lewisburg Mayor Bert Adler said the job creation is a major benefit for his community.
“Lewisburg is very excited about the continued growth at Logan Aluminum as Tri-Arrows makes additional investment and creates 60 new jobs. Having these jobs within four minutes of Lewisburg gives us an opportunity for new residents and new business. We are indeed fortunate to have this global company making investment right here in our part of the county.”
Russellville Mayor Mark Stratton said the company and the communities surrounding it continue to build a strong relationship.
“Russellville and Logan County receive statewide and regional credit for hosting Tri-Arrows at Logan Aluminum. We are proud that we have earned their trust and this investment in their future growth. Their industry-leading training programs and enlightened management style benefit the entire region.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved the company for tax incentives up to $6.5 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 Tri-Arrows for up to $1.5 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.
Tri-Arrows also can 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 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
A detailed community profile for Logan County can be viewed at http://bit.ly/LoganCo.
Information on Kentucky’s economic development efforts and programs is available at ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.