He also noted that the plant was not able to keep up with the changing demands of the aluminum industry, which led to further financial losses. Kentucky's state government also has a financial stake in the mill's future, followinga direct investment it made in Braidy in 2017. What You Need To Know Please avoid obscene, vulgar, lewd, what happened to the aluminum plant in kentucky All rights reserved. Mutual Fund and ETF data provided by Refinitiv Lipper. Bouchard is disputing a press release from his own, Braidy Industries executives told lawmakers Tuesday they're confident they can raise the hundreds of millions needed to launch construction of a, Podcast: Kentucky Black Writers Collaborative Series, Formerly Blacklisted Russian Company To Invest In Kentucky Mill, Company Says It Has Four Months To Raise $300M For New Mill, Beshear Releases Sought-After Braidy Industries Documents. Andy Beshear made a pitch Thursday to a steel company that took over plans to build an aluminum plant once promised to Kentucky, The story of Braidy Industries and its plans to build a $1.7 billion aluminum mill in northeastern Kentucky has always been complicated. Daily Kos moves in solidarity with the Black community. We havent given up.. This material may not be published, broadcast, rewritten or redistributed. Matt Bevin, KY legislators got played badly on aluminum plant. A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. WASHINGTON Democratic lawmakers called on the Trump administration on Thursday to review an investment in Kentucky by a Russian aluminum company that The closure of the aluminum plant in Kentucky had political ramifications as well. The plant, in Columbus, Mississippi, is being built by Steel Dynamics Inc. and it will be a greenfield plant that will produce 650,000 tons of products a year from recycled aluminum. All rights reserved. On Thursday, Braidy Industries released a statement saying CEO and Board Chairman Craig Bouchard had stepped down. Asked to elaborate, Stivers said, I assume whatever this corporate entity or corporate structure is, he owns a substantial amount of shares. BOWLING GREEN, Ky,, Jan. 07, 2021 (GLOBE NEWSWIRE) -- Ball Corporation has chosen Bowling Green, Kentucky, as the location of the companys new aluminum end manufacturing facility. Concerns magnified, particularly in Washington, when the Russian aluminum company Rusal promised to invest $200 million in the company. 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. Save my name, email, and website in this browser for the next time I comment. No one would do business that way. This, in turn, resulted in a decrease in consumer spending, as people no longer had the means to purchase goods and services. The local government could invest in clean-up efforts, such as installing air filtration systems and monitoring water quality. Check out what's clicking on Foxnews.com. Rusal's involvement has been controversial from the start, after it was revealed that the company had been subject to sanctions. "Rusal, one of the leading global aluminium producers, and Braidy Industries Inc., a U.S. base holding company which owns both Veloxint, an MIT-incubated lightweighting solutions company, and NanoAl, a Northwestern University incubated materials research and technology company, announce an intent to establish a joint project in Ashland, Kentucky, USA to produce flat-rolled aluminium products for the U.S. automotive industry," according to a company press release. However, this investment was not enough to revive the plant, and production levels continued to decline. He said that management was always looking for ways to cut costs and improve efficiency, but these efforts were ultimately unsuccessful in keeping the plant afloat. 2023 FOX News Network, LLC. The Ashland Alliance is the chamber of commerce group representing Boyd and Greenup counties. Employees learned of the pending layoffs on Wednesday. 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. 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 State officials, including Gov. each comment to let us know of abusive posts. Russian Oligarch Cancels Funding In Kentucky Aluminum John believes that the closure of the plant was inevitable and that the decision was made by the companys board of directors. Braidy Industries still needs to raise $500 million to build a long-promised $1.7 billion aluminum plant in Appalachia, a top company executive told Kentucky lawmakers Tuesday, July 19, 2022. Russian Company Bankrolling Troubled Kentucky Stay informed daily on the latest news and advice on COVID-19 from the editors at U.S. News & World Report. It was later revealed that a company called Braidy Industries planned to build a $1.7 billion aluminum rolling mill in northeastern Kentucky, creating 600 jobs. What Happened to the Aluminum Plant in Kentucky? A Look at the 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. 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. Beshear calls for deep dive into aluminum mill promise, The 1st Mountaineer is finally picked in the 2023 NFL Draft, Troopers make interesting find while cleaning highway, Police search for man in South Charleston; possibly armed, Pickleball tournament held in Cabell County. Rusal's decision to invest in Braidy's mill was announced in April 2019,a few months after the federal government lifted the sanctions against the Russian firm. Local businesses were also affected by the closure of the plant, as they relied heavily on the plants employees for customers. VA hospital let neighbor illegally decide veteran's fate, report says, Braidy Industries would bring hope and opportunity back to Appalachia and Kentucky, Braidy Industries gave former$6 million to sever ties with company, Kentucky planning to implement a $400 unemployment supplement, Your California Privacy Rights / Privacy Policy. Beshear on Thursday said it will go down as the shadiest economic development deal in Kentuckys history.. He has a Masters in communications from the University of Kentucky and is a native of Maysville, Ky. Support my work with a digital subscription, Bidens diverse coalition of support risks fraying in 2024, CDC advises those at high risk for COVID mask up in these 3 KY counties. Your account has been registered, and you are now logged in. Without it, they said, the area would be unable to attract new businesses and investment. 'False promises' | Braidy Industries says founder misled board Letters: Ky aluminum plant deal was like buying a bridge in Ashland Alliance President Tim Gibbs said he and other local officials are working with the state economic development cabinet to keep the project in Kentucky. Craig.. 2023 www.courier-journal.com. I guess if it hadnt been for the cost of power, we would still be rocking and rolling.. We'd love to hear eyewitness The Board of Directors of Braidy Industries confirmed its action of Jan. 28, 2020, removing Craig Bouchard as CEO and Chairman, Price said in the statement. aluminum The Russians have cut off the cash. If the project does not happen, Stivers said, he expects there would be an attempt by the state to get its money back either through litigation through the attorney generals office or the Economic Development Cabinet. The company that received $15 million in taxpayer money to build an aluminum mill in Eastern Kentucky is changing its name as it looks to move forward without its former chief executive. The U.S. Senate voted down a measure opposing the plan to end thesanctions against Rusal and EN+ Group in January 2019. Support strong local journalism by subscribing today:courier-journal.com/subscribe. Have the latest local news delivered every afternoon so you don't miss out on updates. The U.S. government previously imposed sanctions on Rusal and its parent company, EN+ Group. Regardless of the cause, the closure of the plant had a major impact on the local election cycle. Steelmaker moves ahead on effort to build plant in Southeast; Ky Fox News Flash top headlines are here. Gov Seeks to Salvage Aluminum Mill Deal Promised to Kentucky No racism, sexism or any sort of -ism I will continue, if we think that there is any opportunity there to, to support it.. Kentucky Aluminum Plant Idling, Laying off 600 Workers. Some argued that the plants owners had failed to invest adequately in the facility, while others blamed the government for not providing enough incentives for businesses to remain in the area. Jack Brammer is Frankfort bureau chief for the Lexington Herald-Leader. Several Democrats in Congress quickly expressed concern about the planned investment. Announces New Aluminum End Manufacturing Facility Kentucky He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Be Nice. Senate report: Russian investor in Braidy mill is Kremlin proxy Submitting this form below will send a message to your email with a link to change your password. Century Aluminum (NASDAQ:CENX) said on Wednesday it will closee its smelter in Hawesville, Kentucky, for 9-12 months as "a direct result of skyrocketing energy Steelmaker moves ahead on effort to build plant in Southeast; Ky. officials say they wont give up. Fridays drama created confusion among Kentucky political leaders. Your e-mail address will be used to confirm your account. Kentucky gave a $15 million investment into the project in 2017 after Braidy Industries, now called Unity Aluminum, promised to build a massive aluminum mill near Ashland. Reach reporter Morgan Watkins: 502-582-4502; mwatkins@courierjournal.com; Twitter:@morganwatkins26. 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. The legislative leader said he understood that Bouchard could have done more because of his number of shares in the company.. Tweets from https://twitter.com/heralddispatch/lists/hd-news-4. Aluminum 2023 FOX News Network, LLC. Kentucky Gov. We want their jobs to be in Kentucky.. Your email address will not be published. The plant had been releasing pollutants into the air and water for decades, and the closure did nothing to address these issues. 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. The controversial company, partially funded by Kentucky taxpayers and a Russian aluminum company previously blacklisted by the U.S. Government, left Kentuckys politicians befuddled Friday as its founder and the board of directors he appointed publicly battled for control of the company. Some experts have claimed that it is possible Deripaska could use his ties with these companies to exert some influence over Rusal. The plant provided well-paying jobs and allowed people to stay in the area rather than having to move away in search of employment. 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. There's a good end to that aluminum plant story at least. Major Aluminum Manufacturer Shuts Down - Manufacturing (This content is not subject to review by Daily Kos staff prior to publication. Democrats were investigating McConnell and the Russian investment, and that investigation should continue for the sake of US national security. Will The Real CEO Of Braidy Industries Please Stand Up? 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. This content was created by a Daily Kos Community member. McConnell was among the advocates for lifting sanctions on Rusal, arguing that the deal with Treasury would maintain pressure on Deripaska personally without disrupting global aluminum supplies. ), Surprise! 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. 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. It said, We were previously advised of these changes and it is our understanding they do not impact the current status of the project., Massie, R-Vanceburg, said Friday afternoon that he did not know what the deal is., He said he had no advance notice that Bouchard was stepping down and it took me by surprise as well., Asked if he was concerned about the project, Massie said, Ive always assigned startup odds to it. ASHLAND, Ky. (WSAZ) - For years, eastern Kentucky was promised major economic development with the creation of an aluminum plant under the name Braidy Industries. The Lexington Herald-Leader had asked Cameron about the developments at Braidy. Jun 25, 2022. Your purchase was successful, and you are now logged in. Stivers, R-Manchester, said he was briefed Thursday about Bouchards move and was told that he was asked and amicably stepped down. Stivers did not say who briefed him. 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. "The embarrassment is just going to keep growing over this," Laura Harth, the campaign director at Safeguard Defenders, told Newsweek. I dont what their articles or bylaws are.. Andy Beshear announced the recovery of a $15 million investment to build an aluminum mill in northeastern Kentucky that never materialized. Best States is an interactive platform developed by U.S. News for ranking the 50 U.S. states, alongside news analysis and daily reporting. Our shady former (R) Governor was on that deal and sunk $15M KY tax dollars in it. Fortunately, there are solutions to mitigate the environmental impacts of the plants closure. aluminum plant Matt Bevin, but current Gov. The company said it will own more than 94% of the facility through a joint venture arrangement with Unity Aluminum, formerly known as Braidy Industries. The companys bylaws appear to give Braidys Board of Directors the authority to remove its CEO or Chairman, with or without cause, with a 70 percent vote. He has covered politics and government in Kentucky since May 1978. More:Braidy Industries would bring hope and opportunity back to Appalachia and Kentucky. 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. Regulators are searching for a solution to First Republic Banks woes, hoping to find a way forward before U.S. stock markets open Monday, America's high school graduates are often encouraged to start at a community college before getting a bachelor's degree, but the money-saving move rarely works as planned, The rising Mississippi River will continue to test flood defenses in southeast Iowa and northwest Illinois as it crests in the area on Monday. 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. SCOTUS Now Just Another Congressional Committee, VTB Banks Purchases Russian TV Channel from Abramovich, Trump to Lift Sanctions on Deripaska Companies, MIT Cut Ties With Russian Oligarch Vekselberg, Secret Chinese Police Stations in Europe Are 'Tip of the Iceberg', Trump's Attorney Just Blew Carroll Rape Case, King Charles Says Royals Require 'Acting Ability', Ukraine Will Regain 'Significant Territory' From Russia, Florida GOP Paves the Way to Help Ron DeSantis Challenge Trump. aluminum Kentucky gave a $15 million investment into the project in 2017 after Braidy Industries, now called Unity Aluminum, promised to build a massive aluminum mill near Kentucky aluminum plant cuts off production, lays off 600 workers Braidy Industries still needs to raise $500 million to build a long-promised $1.7 billion aluminum plant in Appalachia, a top company executive told Kentucky lawmakers The miraculous $65 million investment materialized I wish I could say days, but its hours, really after Senate ex-Majority Leader, he-who-must-not-be-named Moscow, Mitch McConnell squashed new sanctions on Russia in January 2019. They estimate it would take 30 to 36 months to construct the facility and the earliest production could begin would be 2025, five full years after the mill was set to be complete. Low 43F. Don't knowingly lie about anyone Party spokeswoman Marisa McNee said McConnell needs to publicly explain what he knows concerning how Rusalbecame a vital source of funds for a project that will be built in the state he has represented in Congress for decades. The newly purchased Reynolds plant in Kentucky, however, was all on one floor, at ground level. Rusal was under U.S. sanctions until early 2019 and has ties to a Russian oligarch close to President Vladimir Putin. As for Unitys role,Steel Dynamics said the plant will supply the beverage, automotive and common alloy industrial sectors. If you forget it, you'll be able to recover it using your email address. The best states in the U.S. come from coast to coast. After working as a DJ and program director, he knew he wanted to come home to Lexington and try his hand in public radio. "Kos" and "Daily Kos" are registered trademarks of Kos Media, LLC. This material may not be published, broadcast, rewritten, Century Aluminum Sebree in Robards, Kentucky is one of only five remaining active aluminum smelters in the U.S. 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. Until I see the board minutes, I dont know what Bouchards status is, she said. We are still working on it, Gibbs said. But the company has still not reached their goal of $1 billion for construction and equipment. "What did he know, and when did he know it? Prior to the closure of the aluminum plant, the local job market was relatively strong. Everyone wants to see the project materialize, said Stivers, because it would be greatly helpful to a region that has lost AK Steel and will soon lose one of two hospitals. We placed our trust in him based on what he gave us.. Now its pumping $200 million into a new project in Kentucky. Steel Dynamics Inc. said this week that its board approved plans to move ahead with construction of the $1.9 billion plant, though it did not specify where other than to say it will be somewhere in the Southeast. On Friday, Bouchard pushed back. Unity Aluminum promised in 2017 to build the aluminum plant at a site off Interstate 64 where Boyd, Greenup and Carter counties come together, and to hire 550 people. The company, though, doubled down on its decision Friday afternoon in a statement from Charles Price, who the company identified as the now-chairman of Braidys Board of Directors. We spoke with John Smith, a former employee of the aluminum plant who worked there for 10 years before its closure. Osborne, R-Prospect, said he talked to the governors office early Friday morning about Bouchard. Until it gets built, you always have to have concerns, he said. And three months later, Rusal announced plans for an extraordinary partnership with Bouchards company, providing $200 million in capital to buy a 40 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Exploring the Dangers of Microwaving Aluminum Foil. Legal Statement. Additionally, the government could incentivize businesses to invest in green technologies, such as solar and wind power. Winds W at 10 to 20 mph. The new aluminum plant, slated to be built in the home state of Senate Majority Leader Mitch McConnell, will be the biggest new aluminum plant constructed in the U.S. in decades. See also:Kentucky planning to implement a $400 unemployment supplement. This story was originally published January 31, 2020, 12:09 PM. Asked if Bouchards move was driven by shareholders in the company, Stivers said he did not know. Rusal has so far poured $65 million into the venture, which local officials have been counting on to bring hundreds of high-paying jobs to the region. Kentucky Wikipedia Andy Beshear has released documents related to Kentuckys investment in Braidy Industries. LOUISVILLE, Ky. Gov. Century Aluminum has announced plans to shut down its Hawesville smelter for 9 to 12 months starting in August. Powered and implemented by FactSet Digital Solutions. Overgrown signs and fencing The Century Aluminum plant in Hawesville, Kentucky, is shutting down production due to rising energy costs. 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.". An aluminum plant in Kentucky laid off 600 people. The long-delayed aluminum plant project near Ashland, Kentucky is facing another setback. You have permission to edit this article. The Russians said that they would build the largest aluminum plant in the United States in Kentucky. Andy Beshear, have said they hope the mill project will succeed and create job opportunities in the commonwealth. 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 We also spoke with several local business owners who were affected by the closure of the aluminum plant. Notwithstanding anything herein to the contrary, the Chairman, President and/or Chief Executive Officer may be removed, either with or without cause, solely by an affirmative vote of seventy (70%) percent of the members of the Board of Directors, the bylaws read. The mill has