Approximately $305 million aluminum processing facility to open by 2020
Media Contacts: Nicole Burton
FRANKFORT, Ky. (May 14, 2018) – Gov. Matt Bevin today joined executives from Novelis Inc. along with federal, state, local and industry representatives to break ground for the aluminum supplier’s $305 million processing plant in Todd County, which will create 125 full-time jobs producing automotive-grade aluminum sheet.
“Novelis is a global leader in the aluminum industry, and Kentucky is proud to have a thriving partnership with this growing company,” said Gov. Bevin. “As we look to the future, Novelis will be a key player in our efforts to become the center for engineering and manufacturing excellence in America. We are grateful to Novelis and their leadership team for their continued commitment to Kentucky, and are excited to see them flourishing both here and around the world.”
Work began today on construction of Novelis’ 400,000-square-foot facility on a 150-acre greenfield site in Guthrie. Once complete, the company will heat treat and pre-heat rolled aluminum coils from the nearby Logan Aluminum operation in Russellville that is co-owned by Novelis. The Guthrie facility will include machinery and technology to produce automotive-body-panel-grade aluminum sheet, increasing the company’s global capacity. Company leaders anticipate it will be operational by 2020.
“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,” said Steve Fisher, president and CEO of Novelis. “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.”
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 $11.5 billion in revenue in fiscal 2018.
In addition to the automotive industry – where more than 225 vehicle models use its aluminum alloy – customers use the company’s products to manufacture a vast array 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. In early 2017, 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.
Sen. Whitney Westerfield, of Crofton, said the Novelis facility will boost the region’s automotive footprint.
“As the world’s largest recycler and top producer of aluminum, I am proud that Novelis has made Guthrie, Kentucky its home,” Sen. Westerfield said. “The arrival of Novelis will encourage further investments and job growth in our community and strengthen Kentucky’s leadership in the automotive industry as well as the broader aluminum industry. I congratulate the company on this groundbreaking.”
Rep. Jason Petrie, of Elkton, said Novelis will be a difference maker in Guthrie.
“This is an important day for Todd County,” Rep. Petrie said. “Today marks the beginning of a new era of job creation in the region. I can’t wait for the Novelis plant to open, which will provide more than 100 jobs for Todd County residents.”
Guthrie Mayor Scott Marshall welcomed the investment and new jobs the Novelis plant will bring.
“I am both honored and excited to welcome Novelis to Guthrie, Ky.” Mayor Marshall said. “Everyone in our community is thankful for this partnership and look forward to the jobs and opportunities that will be provided.”
Jimmy Turner, interim Judge-Executive in Todd County, shared his enthusiasm for the project.
“We are excited to welcome Novelis to Kentucky, Todd County and our community,” said interim Todd County Judge-Executive Turner.
Mark Lindsey, executive director of the South Western Kentucky Economic Development Council, said the effects of Novelis’ arrival will be far reaching.
“It is so exciting for not only Guthrie and Todd County, but the entire region to see this project finally coming to fruition,” Lindsey said. “Our team welcomes Novelis to the area and is very excited to have a long lasting partnership with them.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) 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 also will 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 here.
To watch an archived version of today's groundbreaking ceremony, visit Gov. Bevin's official Facebook page.
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.