Atlanta’s rolled and recycled aluminium firm Novelis Inc. played host to an august body of dignitaries on Monday as it broke ground on its new US$305 million automotive aluminium sheet manufacturing plant in Guthrie, Kentucky.
The 400,000 ft2 will be the site at which Novelis will house around US$60 million in capital investments, including heat treatment and pre-treatment lines. Per the firm, the decision to build the facility was motivated both by a recovered aluminium market and favorable developments to the state and federal tax regimes.
Novelis says the new facility will employ 125 individuals when it is completed in 2020 and feature a nameplate capacity of 200 thousand metric tons per annum. This facility will join the firm’s aluminium can recycling plant in Berea and Logan Aluminum, a joint venture between Novelis and Tri-Arrows Aluminum.
Steve Fisher, President and CEO, Novelis Inc., greeted the plant’s opening as a positive development for all parties involved.
“The increased adoption of aluminum in cars, trucks and SUVs, coupled with more automotive manufacturing plants in the southeast makes Guthrie a strategic location to serve our customers. With the strong, highly-skilled workforce in Kentucky, we believe our culture and commitment to building a sustainable world together will have a lasting and positive impact on this community.”
Congressman James Comer (R-KY) pointed to the move as proof positive of the strategic implementation of tax reform to encourage economic growth.
“I am fortunate to represent such hard-working men and women from the First District of Kentucky. Novelis’ investment in this new plant demonstrates the value of Kentucky’s community of highly-skilled, advanced manufacturing workers. This is just one of many benefits of tax reform that we are seeing, and I look forward to continuing to work with industry leaders to grow the economy and create jobs. I thank Novelis for this great investment in our Kentucky workforce, and am eager to witness the benefits this facility will have on Guthrie and surrounding counties.”
Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$10 billion in revenue for the most recent fiscal year.