KY: Feralloy to Create 30 Jobs with Steel Processing Plant in Gallatin Co.
21 Jul, 2020
Kentucky Gov. Andy Beshear announced Feralloy Corp., a Chicago-based steel processing company, plans to locate a 30-job, $17.5 million facility on Nucor Steel Gallatin’s campus near Ghent to level and cut steel for customers throughout the Ohio Valley region.
“I’d like to welcome Feralloy to Kentucky and thank its leaders for creating jobs in our state during an uncertain time. Their confidence in Kentucky’s business sector highlights our advantages for companies making long-term commitments to our communities,” Gov. Beshear said. “For the primary metals industry, Kentucky provides a key location nationally, low electricity rates, shipping options including rail, river and highway and an experienced workforce. These, and the momentum of our current industry partners like Nucor and Feralloy, will propel growth well into the future.”
By leasing a 60,000-square-foot facility at Nucor’s steel mill in Gallatin, Feralloy will receive steel coils directly from the mill, then cut and level them into high-quality sheets per customer spec. The new facility will enable Feralloy to better serve customers in the Ohio Valley and Eastern US. Operations are scheduled to begin in October of this year with one shift of 15 employees, expanding to additional shifts soon after.
Feralloy dates back to 1954 and has become a major steel service center in North America with 13 locations in the US and Mexico, serving a range of customers including small, family owned manufactures and distributors as well as large original equipment manufacturers. Feralloy is a wholly owned subsidiary of Los Angeles-based Reliance Steel & Aluminum Co., an NYSE-listed Fortune 500 company.
Since the start of the Beshear administration in December 2019, Kentucky has announced 13 primary metals industry projects, promising investments over $110 million and nearly 500 full-time jobs. In total, Kentucky is home to nearly 230 primary metals facilities employing almost 27,000 people.
Sen. Paul Hornback, of Shelbyville, said the work to establish Kentucky as a strong place to do business over the years has paid off with projects such as Feralloy’s new location.
“This is welcomed news for Ghent and all of Carroll County,” Sen. Hornback said. “Feralloy recognizes all this community has to offer, and we are grateful for their partnership with Nucor Steel at Gallatin’s campus. Partnerships like this serve to help us recover from the challenges brought on by COVID-19. The steps we have all taken over the past several years to strengthen our businesses environment provides Kentucky with opportunities for recovery from the effects of the pandemic. I thank Feralloy for this investment as well as Nucor Steel for the advantages they bring to Carroll County and its people.”
Rep. Rick Rand, of Bedford, noted the group effort required to make this project possible.
“This announcement is great news for our community, so I want to thank the leaders of Feralloy Corp. for investing so much here and creating these much-needed new jobs,” Rep. Rand said. “Nucor Steel deserves a lot of credit for making this project possible, and I also appreciate the hard work of our local and state economic development officials. Like all of them, I’m looking forward to the day this facility is up and running.”
Gallatin County Judge-Executive Jon Ryan Morris expressed gratitude.
“We are thankful that Feralloy has decided to locate on Nucor’s Campus in Gallatin County,” Judge-Executive Morris said. “We are thankful for Nucor’s continued commitment to Gallatin County, and the partnership between Nucor and Feralloy proves just that. We are excited that Feralloy will bring new jobs to Gallatin County and look forward to their success.”
Shelby Miles, executive director of the Kentucky I-71 Economic Development Alliance (KIEDA), said the new addition builds on the region’s growing industrial strength.
“We are excited to welcome Feralloy as they expand their operations at the Nucor Steel Gallatin campus,” Miles said. “The addition of Feralloy in Gallatin County further provides economic opportunity and job creation in an already strong industrial corridor. We look forward to working with Feralloy as they continue to grow within our community.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in June approved Feralloy for up to $90,000 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.
In addition, Feralloy 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.
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