Tri-Arrows Aluminum Inc., a supplier of rolled aluminum sheet for beverage cans and automotive uses, will invest $125 million to build a cold rolling mill at Logan Aluminum Inc. in Kentucky which is expected to create 60 jobs in the western part of The Blue Grass State. The project aims to cater to the rising customer demand in both the industries.
The new rolling mill will supplement an existing cold rolling operation at Logan Aluminum and expand both beverage can stock production capacity and thicker, higher-alloy rolled sheet for use in automotive body and structural panels.
The company expects the construction to finish by early 2019 and the production of the first coils is expected to begin in spring.
The project is a part of the second phase of an ongoing expansion project at Logan Aluminum. Phase1 comprised of $250 million investment in Logan Aluminum’s recycling/new ingot casting facility. That work is already supplementing capabilities and capacity at its rolling mills, scalping and pre-heating operations and a few other aspects of phase1 would begin operation later this year.
Tri-Arrows is a subsidiary of Tri-Arrows Aluminum Holdings Inc. (TAAH), which is 75% owned by UACJ Corp and 20% by Sumitomo Corp. and 5% by Itochu Metals Corp. and Itochu Corp. Logan Aluminum is a joint venture between Tri-Arrows and Novelis Inc. The facility accounts for about 45% of North American aluminum beverage can sheet production.
Commenting on the investment, said Governor Matt Bevin said, “This investment in Logan Aluminum will have a strong positive impact on Western Kentucky's economy for many years to come.”
“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,” he added.
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Senator Whitney Westerfield also expressed her excitement at the news of expansion at Logan Aluminum near Russellville.
Kentucky Economic Development Finance Authority (KEDFA), which was formed to encourage the investment and job growth in the community, approved the company for tax incentives up to $6.5 million through the Kentucky Business Investment program. KEDFA also approved up to $1.5 million in tax incentives for Tri-Arrows through the Kentucky Enterprise Initiative Act (KEIA).
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