Supplies rolled aluminum sheet for beverage cans and automotive uses
FRANKFORT, Ky. (May 25, 2017) – Tri-Arrows Aluminum Inc., which supplies rolled aluminum sheet for beverage cans and automotive uses, will invest $125 million to locate a cold rolling mill at Logan Aluminum Inc. in Logan County, creating 60 jobs in Western Kentucky.
The new mill, which will join an existing cold rolling operation at Logan Aluminum, will add production capacity for both beverage can stock and thicker, higher-alloy rolled sheet for use in automotive body and structural panels. The project comes in response to rising customer demand in both industries.
Company leaders anticipate construction will finish by early 2019, with production of the first coils beginning that spring.
The announcement is a second phase of an ongoing expansion project at Logan Aluminum. Phase one, announced in fall 2015, included 190 new jobs and a $250 million investment in Logan Aluminum’s recycling/new ingot casting facility. That work is adding capabilities and capacity at its rolling mills, scalping and pre-heating operations. Many aspects of the phase-one project are scheduled to begin operation later this year.
Headquartered in Louisville, Tri-Arrows is a subsidiary of Tri-Arrows Aluminum Holdings Inc. (TAAH). TAAH was established in 2011, and is 75 percent owned by UACJ Corp., 20 percent by Sumitomo Corp., three percent by Itochu Metals Corp. and two percent by Itochu Corp.
Logan Aluminum began production in 1983 and is a joint venture between Tri-Arrows and Novelis Inc., which is based in Atlanta. The facility accounts for about 45 percent of North American aluminum beverage can production.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved the company for tax incentives up to $6.5 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 Tri-Arrows for up to $1.5 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.
Tri-Arrows also 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. In fiscal year 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.