Company previously invested $15 million at Henderson facility in July 2022
FRANKFORT, Ky. (May 30, 2024) – Today, Gov. Andy Beshear announced exciting growth in the state’s efforts to better support the surging automotive market as Hydro Aluminum Metals USA LLC, a producer of recycled aluminum products, will expand its manufacturing operation in Henderson with an $85 million investment creating 31 high-wage Kentucky jobs.
“Kentucky businesses are constantly finding ways to grow, innovate and further establish the commonwealth as a destination that can support any industry,” said Gov. Beshear. “Hydro Aluminum’s investment will further support the ever-growing and -changing automotive market, and I am thrilled to see this innovative technology make its way to Kentucky. I want to thank the company’s leadership for continuing to invest in the Henderson community and look forward to their ongoing success.”
The investment will see Hydro Aluminum expand its current Henderson facility by 80,000 square feet, bringing the total operational square footage to nearly 200,000. The additional room will allow the company to introduce HyForge technology to the Henderson plant, following in the footsteps of the successful implementation of the HyForge casting technology at the company’s primary plant in Norway and recycling plant in Germany.
The new HyForge casthouse at the Henderson facility is expected to become operational in 2026. When in operation, the new addition will serve the automotive market’s need for smaller diameter, high-quality billets that can be forged directly into high-quality automotive components. This process will help reduce the number of processing steps needed for the operation, leading to a more cost-efficient, higher-quality product compared with the traditional process. The more efficient process will come without compromising safety, and by using a high share of end-of-life scrap, Hydro Henderson will deliver HyForge billets with a low carbon footprint.
“This investment is another step along Hydro’s journey to change the game in aluminum production. Recycling more end-of-life scrap reduces emissions, strengthens security of supply and enables us to deliver new, cutting-edge products to our U.S. customers, made right here in Kentucky,” said Hydro President and CEO Eivind Kallevik. “Hydro Henderson has been at the forefront of producing recycling-based automotive products for nearly 20 years. We work closely with the automotive industry, and introducing Hydro’s HyForge technology will provide Hydro and our partners with a greener advantage. Made in America.”
Hydro’s investment supports production of recycled, low-carbon aluminum, including Hydro CIRCAL, the company’s proprietary advanced material. Hydro CIRCAL is made with a minimum of 75% recycled, post-consumer aluminum scrap. Once in full production, Hydro’s Henderson facility will produce 2,000 to 4,000 tons of Hydro CIRCAL products annually.
Since 1905, Hydro has converted natural resources into valuable products for customers across a range of industries. Currently, Hydro employs 31,000 people at more than 140 locations in 40 countries. The company has produced aluminum in North America since 1993 and employs more than 6,000 people within two business units, Hydro Aluminum Metals and Hydro Extrusions.
Henderson County Judge/Executive Brad Schneider is excited to see Hydro expand in the community and continue to believe in the local workforce: “I am thrilled the leadership at Hydro has chosen its Henderson County facility for such significant capital and workforce investments. It makes me proud that an internationally known and respected company such as Hydro has that level of confidence in our community and its team here. We are grateful for that trust and optimism and vow to do everything we can at county government to make Hydro glad it took this chance on us.”
Whitney Risley, Henderson economic development director of existing industries, looks forward to the innovative company continuing to grow and provide job opportunities for local residents: “We are proud of Hydro Aluminum to announce their expansion of their Henderson facility. They have continued to retool and advance new products in the automotive sector. We appreciate their continued growth and involvement in the Henderson community.”
Hydro’s investment and job creation build on the best four-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $31.7 billion in announced investments, creating approximately 53,300 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.
In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $85 million and annual targets of:
- Creation and maintenance of three Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $40.50 including benefits across those jobs.
Additionally, KEDFA approved Hydro for up to $150,000 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.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Hydro Aluminum can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Hydro Aluminum, visit Hydro.com.
Learn more about Hydro’s HyForge technology here.
A detailed community profile for Henderson County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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