Gov seeks to salvage aluminum mill deal promised to Kentucky

Jul 21, 2022, 2:17 PM | Updated: 2:57 pm

FRANKFORT, Ky. (AP) — Gov. Andy Beshear made a pitch Thursday to a steel company that took over plans to build an aluminum plant once promised to Kentucky, hoping to salvage a deal struck by his predecessor.

Beshear said his economic development team has reached out to Steel Dynamics Inc., offering to show potential sites for the $1.9 billion plant. The company said this week it will build and operate the mill but did not specify a location, other than to say it will be in the southeastern U.S.

“We are very interested in working with them,” the governor said at his weekly news conference. “We want to talk to them. We want their jobs to be in Kentucky.”

Steel Dynamics did not immediately respond to an email Thursday seeking comment. It took over the project after reaching a deal with another company that so far has failed to deliver on its promise to put the plant in Kentucky — even with financial backing from the state.

Indiana-based Steel Dynamics said it will own more than 94% of the facility through a joint venture arrangement with Unity Aluminum. Unity — formerly known as Braidy Industries — intended to build the mill near Ashland in northeastern Kentucky but struggled to line up sufficient financing.

Kentucky has its own stake in the project — a $15 million investment that then-Gov. Matt Bevin, a Republican, persuaded state lawmakers to approve to back Braidy. A Unity spokesperson offered assurances Wednesday that the state of Kentucky will recoup its investment.

Beshear’s frustration with the years of promises from Braidy and then Unity boiled over Thursday. He said bluntly it will go down as the “shadiest economic development deal in Kentucky’s history.”

“We saw nothing for Kentucky,” said Beshear, a Democrat who ousted Bevin in the 2019 election. “We were used. We were conned. They sold us false hope and that is very, very wrong.”

The Unity spokesperson did not immediately respond to the governor’s remarks.

In 2017, amid great fanfare, Braidy promised to build the plant near Ashland and hire 550 people. The project was hailed at the time by state and local officials. The Appalachian region has lost thousands of jobs amid deep declines in the coal industry and manufacturing. The company planned to have the mill open in 2020. But the company underwent a management shakeup and name change in its long and ultimately unsuccessful quest to raise sufficient capital to proceed.

Now, Steel Dynamics’ plans for the mill are much larger in size and scope than what Unity had contemplated. And that could potentially deliver the final setback for the Ashland area’s hopes.

The Steel Dynamics mill is expected to produce nearly double the volume of aluminum than the original proposal for the Kentucky site, the Unity spokesperson has said. Steel Dynamics also hopes customers will locate operations at the mill site to save money.

The Ashland-area site — about 240 acres (97 hectares) — is “insufficient to meet the size and scope requirements” of the new project, the Unity spokesperson told The Associated Press on Wednesday. Steel Dynamics has not responded to emails asking about that Kentucky site.

Steel Dynamics has said its estimated $2.2 billion project includes two supporting aluminum slab centers to be built elsewhere. Commercial production is planned to begin in early 2025. Unity will have a small ownership stake in the new project, its spokesperson has said.

Beshear said Thursday that the Ashland-area site will be developed, one way or another.

“Either we are going to get Steel Dynamics to come here, or we’re going to get that property back,” he said. “We could have located multiple opportunities on that property by now.”

Kentucky Senate President Robert Stivers said he hopes the new mill venture will be a success.

“More importantly, we want to see Kentucky be a beneficiary,” the Republican Senate leader said in a statement Thursday. “For that reason, we remain optimistic and encourage the administration to do its best and fully engage in retaining the project.”

Beshear already has landed the state’s two largest-ever economic development projects — both related to battery production for electric vehicles. Kentucky last year posted records for job creation and investments and on Thursday posted its lowest-ever unemployment rate — 3.7% in June.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
2 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
2 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
8 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
16 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
16 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
23 days ago

Sponsored Articles

(Photo: OCD & Anxiety Treatment Center)...

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.
(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
Gov seeks to salvage aluminum mill deal promised to Kentucky