Your purchase was successful, and you are now logged in. John explained that the plant had been struggling financially since the late 2000s. Support strong local journalism by subscribing today:courier-journal.com/subscribe. This material may not be published, broadcast, rewritten, Kos Media, LLC. But the company has still not reached their goal of $1 billion for construction and equipment. How a McConnell-backed effort to lift Russian sanctions boosted Maybe for Monday consumption. Powered and implemented by FactSet Digital Solutions. Chance of rain 60%.. Cloudy with light rain this evening. each comment to let us know of abusive posts. The closure of the aluminum plant in Kentucky had a significant economic, environmental, and political impact on the local community. Employees learned of the pending layoffs on Wednesday. Your email address will not be published. The purpose of this article is to explore the closure of the aluminum plant in Kentucky and its economic, environmental, and political implications. Bevin asked us to do that has not come to fruition. The purpose of this article is to explore the The story of Braidy Industries and its plans to build a $1.7 billion aluminum mill in northeastern Kentucky has always been complicated. racist or sexually-oriented language. HAWESVILLE, Ky. (AP) A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. accounts, the history behind an article. Tags: Associated Press, business, Kentucky, education. Steelmaker moves ahead on effort to build plant in Southeast; Ky There's a good end to that aluminum plant story at least. Legal Statement. In the days since President Joe Biden formally launched his 2024 campaign, key members of the sprawling political coalition that lifted him over former President Donald Trump in 2020 are far from excited about the prospect of four more years. "What did he know, and when did he know it? See also:Kentucky planning to implement a $400 unemployment supplement. The Kentucky Democratic Party on Wednesday questioned McConnell's decision to support lifting the sanctions on Rusal, in light of the Senate Intelligence Committee report's identification of Rusal as a proxy for the Kremlin. Putin got the sanctions lifted, and Mitch McConnell got played for a fool. The deal was originally brokered under former Gov. The Russian firm, United Co. Rusal, agreed last year to invest $200 million in the mill, which is expected to create hundreds of long-term jobs in a struggling region of the state if Braidy is able to raise enough financing to build the facility, which will cost well over $1.5 billion. Kentucky aluminum plant The company, in its press release Thursday, named its current president, Kentucky native Tom Modrowski, as its interim CEO. Have the latest local news delivered every afternoon so you don't miss out on updates. Asked to elaborate, Stivers said, I assume whatever this corporate entity or corporate structure is, he owns a substantial amount of shares. The U.S. removed Rusal from its sanctions list in January, after the Treasury Department struck an agreement with the company that saw Deripaska, a close ally of Russian President Vladimir Putin, reduce his stake in the company to below 50 percent and lower his voting rights to below 35. 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Regardless of the cause, the closure of the plant had a major impact on the local election cycle. So far the company has sunk at least $65 million in the proposed mill, to be built by Unity Aluminum, previously known as Braidy Industries. However, after the closure of the plant, the job market in the area took a sharp downturn. 2023 FOX News Network, LLC. A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. Invalid password or account does not exist. John grew up in the area and was able to provide us with valuable insight into the dynamics of the plant and its eventual closure. There are just too many unanswered questions, and too many people from McConnells orbit who have been exposed as playing a big role in this deal for him to continue to play dumb," McNee said. Roberts said the company told him that its power costs have risen dramatically this year. An elite leader of young people. LexCath hires St. Xavier assistant as football coach. Major Aluminum Manufacturer Shuts Down - Manufacturing Andy Beshear made a pitch Thursday to Steel Dynamics, offering to show potential sites for the $1.9 billion plant to salvage a plan started by his predecessor. Concerns magnified, particularly in Washington, when the Russian aluminum company Rusal promised to invest $200 million in the company. I still remain cautiously optimistic.. Matt Bevin (R) boasted was as significant as any economic deal ever made in the history of Kentucky.. According to a Bloomberg report, Rusal, the formerly blacklisted Russian company with a major stake in the 10-figure project, is suspending its investments while it awaits word that its U.S. partners have raised the necessary funds. We won't share it with anyone else. Aluminum But I think that there needs to be a deep dive in how the policymakers inside the last administration are somehow the presidents or senior executives of the company that they encouraged direct investments in or let them out of the obligations, Beshear said. I will continue, if we think that there is any opportunity there to, to support it.. The Unity spokesperson said Wednesday that the state will recoup its investment when the deal with Steel Dynamics closes, and Steel Dynamics said Unity employees will provide expertise to the project. Louisville Courier Journal 0:00 1:09 A Russian company that has invested in Braidy Industries' planned aluminum rolling mill in Eastern Kentucky was identified as a October 06, 2021 1:39 PM. HAWESVILLE, Ky. (AP) A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. The lesson for Republicans should be that if they are going to sell themselves out to Putin, they should be smart enough to get payment up front. Braidy Industries became a hotly debated company two years ago when then-Gov. Kentucky Without it, they said, the area would be unable to attract new businesses and investment. Share with Us. And it points to Russian oligarch Oleg Deripaska a part-owner of Rusal, which is a major aluminum company that operates internationally as a key figure. Matt Bevin persuaded lawmakers to approve. The county's judge-executive, Johnny Roberts, told the newspaper the company gave him no assurances the plant would reopen after that. Braidy Industries Inc. CEO Craig Bouchard, right, and then-Republican Kentucky Gov. All rights reserved. Your e-mail address will be used to confirm your account. Built in 1973, Century Aluminum Sebree is the largest U.S. aluminum production facility, or smelter, operating at full capacity and the largest emitter of perfluorocarbons (PFCs) from aluminum production in the United States Kentucky's state government also has a financial stake in the mill's future, followinga direct investment it made in Braidy in 2017. Both Stivers and Osborne said they did not know of any request from the company for more state assistance or why Bouchard stepped down. Its obviously a setback when a CEO and visionary leaves, so I dont see this as good news., State Sen. Robin Webb, R-Grayson, represents the district where the proposed mill would be build. My sole focus is rebuilding Ashland and NEK. The Board and CEO Tom Modrowski are committed to the Ashland community and focused on building the Kentucky mill.. The plant, with about 628 workers, is the second-largest employer in Hancock County, the Owensboro Messenger-Inquirer reported. We are still working on it, Gibbs said. Letters: Bamboozled.. Discovering the versatile world of aluminum. Top headlines:VA hospital let neighbor illegally decide veteran's fate, report says, Braidy which recently brought a new acting president and CEO, Don Foster, on board responded through a spokeswoman with the following statement: "Don Foster is hard at work every day, utilizing his expertise and expansive network built during his 40 years in the metals industry to finalize financing and build the mill in Ashland, KY.". Steel Dynamics did not respond to emails and calls seeking comment on where its new mill would be located. After working as a DJ and program director, he knew he wanted to come home to Lexington and try his hand in public radio. We are incredibly excited to announce this meaningful growth opportunity, which is aligned with our existing business and operational expertise, Mark D. Millett, chairman and CEO of Steel Dynamics, said in a news release. Matt Bevin, KY legislators got played badly on aluminum plant. Politicians used the closure as a political tool, blaming each other for the loss of jobs and trying to score political points in the process. WP was on it, though it took a few months. We'd love to hear eyewitness The Russian company backing an aluminum project in Kentucky said its suspending investments as it waits for U.S. partners to raise funds, dealing a new setback to the billion-dollar-plus mill that was supposed to be completed last year. The plant along the Ohio River had recently increased production and in April announced an addition of 60 jobs. Rusal will have a 40 percent stake in the facility. Copyright 2022 TheAssociated Press. Osborne, R-Prospect, said he talked to the governors office early Friday morning about Bouchard. And a significant number of its steel customers also have demand for aluminum, it said. Also on Monday, the public affairs company Mercury, which was hired by British Lord Gregory Barker to lobby for the oligarch's companies to be removed from the U.S. sanctions list, filed a letter under the Foreign Agents Registration Act describing how "the Barker plan permanently removed Oleg Deripaska from control" of his companies EN+ and Rusal. However, in 2019, the plant closed its doors for good, leaving many in the community wondering what happened. | Understanding the Risks and Benefits of Switching to an Aluminum-Free Deodorant, Exploring the Benefits of 80/20 Aluminum for Construction Projects. All rights reserved. Click here to stay informed and subscribe to Herald-Dispatch. Market data provided by Factset. In 2011, the plant was acquired by a new company, which invested heavily in modernizing the facility. Matt Bevin, but current Gov. Jack Brammer is Frankfort bureau chief for the Lexington Herald-Leader. This is the name that will be displayed next to your photo for comments, blog posts, and more. Winds WSW at 10 to 20 mph. Reynolds Metals Company Jason has a Bachelors Degree in Political Science. The Evergreen State takes the top spot again in the U.S. News Best States ranking on the strength of its tech sector and other industries. If you forget it, you'll be able to recover it using your email address. The Lexington Herald-Leader had asked Cameron about the developments at Braidy. Braidy officials have said they expect the plant to cost $1.7 billion and bring hundreds of jobs to the Ashland area. No ones attorneys would ever advise them to do business that way. We also spoke with several local business owners who were affected by the closure of the aluminum plant. Reach reporter Morgan Watkins: 502-582-4502; mwatkins@courierjournal.com; Twitter:@morganwatkins26. Letters: Ky aluminum plant deal was like buying a bridge in or anything. You've successfully subscribed to this newsletter! Despite the financial losses, he expressed sadness at the loss of jobs for so many in the local community. Create a password that only you will remember. The agreement requires the companies to report any contact between Deripaska and company affiliates, including members of the board. Rusal, the largest producer of aluminum outside China, will help fund and supply a low-carbon Kentucky The Committees findings, along with other information recently released by the Intelligence Community, confirm what we already knew: Russia, China, Iran, and other foreign actors want to influence our politics, interfere with our elections, and stoke fear and division among Americans," McConnell said. By STEVE PEOPLES and ZEKE MILLER Gov Seeks to Salvage Aluminum Mill Deal Promised to Kentucky aluminum The platform is designed to engage citizens and government leaders in a discussion about what needs improvement across the country. Please avoid obscene, vulgar, lewd, United Co. Rusal International PJSC announced the move on Unity Aluminum, formerly known as Braidy Industries, in a call on Wednesday. The Russian company backing an aluminum project in Kentucky said its suspending investments as it waits for U.S. partners to raise funds, dealing a new setback The Attorney Generals office is aware of the leadership transition within Braidy Industries and is actively engaged in learning more about the change to ensure that Kentuckys investment in the company is protected and that the anticipated economic benefit to Eastern Kentucky comes to pass, said Elizabeth Goss Kuhn, Camerons communications director, in an email. Senate Majority Leader Mitch McConnell, as well as Sen. Rand Paul, bothKentucky Republicans, voted against that attempt to keep the sanctions in place. Don't Threaten. Powered and implemented by FactSet Digital Solutions. Your email address will not be published. This governors office is committed to seeing it through and you know its a project that is going to mean generational change in that area., The only statement from Beshears office came through his spokesman, Sebastian Kitchen. what happened to the aluminum plant in kentucky Civil & Environmental Consultants wins aluminum-plant contract Kentucky Gov. The project will be funded with available cash and cash flow from operations, the company said. So far, though, there have been no jobs, no funds and even more doubts. I have not stepped down as the CEO of Braidy Industries, and I am the Chairman of the Board and CEO of Braidy Atlas., He added: After I complete my next flight, have a chance to kiss my wife and hug my kids, I will begin to prepare a longer statement for you and for the press.