MHM Metals to locate new manufacturing facility in Russellville, create 30 new jobs
By Jim Turner

Posted on January 1, 0001 12:00 AM

Australian company to invest more than $25.1 million, produce aluminum by-products

Governor Steve Beshear Monday joined community leaders and officials from MHM Metals to announce the company has chosen to locate its new manufacturing operation in Russellville. The company, which will do business under the name Alreco, plans to purchase the former ITW building, which will result in 30 new jobs and a more than $25.1 million investment in the Commonwealth.

“As one of the top aluminum producing states, the aluminum industry in Kentucky is a critical piece of the industrial landscape, employing more than 13,000 Kentuckians,” Gov. Beshear said. “Global companies such as MHM Metals continue to find the Commonwealth to be the ideal place to do business and this more than $25 million investment is further proof of our success. We welcome MHM Metals’ new manufacturing facility and the 30 jobs it will create.”

Australian-based MHM Metals processes aluminum salt cake and aluminum black dross, which are by-products of the secondary aluminum industry. More than 2 billion pounds of these products is produced within the U.S. each year, largely disposed of in landfills.

MHM Metals’ exclusive technology allows the company to produce its product through an environmentally sound process that eliminates any materials going to a landfill. The new plant is expected to be operational by the first quarter of 2013.

“Alreco has assessed several sites throughout the U.S. and chose Russellville, Kentucky as the preferred location for a leading-edge facility that will process by-products from aluminum recycling that previously had to be disposed in landfills,” said Ben Mead, director of MHM Metals Limited. “After proving the technology in Australia, this will be the first U.S. plant that efficiently recovers all the component commodities for re-use, with nothing going to landfill. This has substantial benefits for the aluminum industry, the environment and will generate direct and indirect jobs.”

Kentucky is home to more than 120 aluminum-related facilities in all, including, Logan Aluminum in Russellville, Aleris Rolled Products in Lewisport, Gibbs Die Casting Corp. in Henderson, Century Aluminum of Kentucky in Hawesville, Aisin Automotive Casting in London, Cardinal Aluminum Company in Louisville, and many more.

To encourage the MHM Metals to locate its facility in Russellville, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $825,000 through the Kentucky Business Investment Program. The performance-based incentive allows the company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

“MHM Metals is a welcome addition to the business landscape in Logan County,” said Sen. Joey Pendleton, of Hopkinsville. “These 30 new jobs will provide a boost to the local economy and new opportunities for the workforce. Thank you to Gov. Beshear on his efforts to provide jobs and opportunities for the citizens of Logan County.”

“I am proud to see MHM Metals become part of our Logan County business community,” said Rep. Martha Jane King, of Lewisburg. “Their investment in recyclable aluminum technology will only add to the prominent position Logan County plays in the aluminum industry. Congratulations to MHM Metals, and our local and state officials for their teamwork to help bring new business and jobs to our county.”

“The city of Russellville and its citizens are delighted that MHM Metals has chosen Russellville for the location of their industrial facility,” said Russellville Mayor Mark Stratton. “It is a privilege for our city to be the selection site for this economic growth and opportunity.”

“This is an exciting time for Russellville and Logan County,” said Logan Chick, Logan County Judge-Executive. “We are pleased to hear that MHM Metals chose Logan County to locate one of their manufacturing plants. We feel MHM Metals will be a natural fit and asset to our community. The Logan County Economic Development team, along with the Industrial Development Authority, has work diligently, and now this is a time of celebration. Welcome to Logan County, MHM Metals.”

“TVA congratulates MHM Metals on their decision to locate in Russellville, Kentucky,” said TVA Senior Vice President of Economic Development John Bradley. “TVA and Pennyrile Rural Electric Cooperative are privileged to partner with the Commonwealth of Kentucky and Logan Economic Alliance for Development (LEAD) to assist MHM as they grow in Logan County.”

For more information on MHM Metals, visit <> <>.

Information on Kentucky’s economic development efforts and programs is available at <>. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at <> or follow on Twitter at <>.

A detailed community profile for Russellville (Logan County) can be viewed at <> .

The following information was released to the press by MHM Metals:

Technology introduced for first time in US that processes byproducts from aluminum recycling,
recovering valuable commodities for re-use
Australian proven process, profitable and biggest user is Alcoa Australia
New industrial development on 115-acre industrial landholding in Russellville, Kentucky
Anticipated $25 million investment and creation of at least 30 new jobs
MHM has identified over 350,000 tonnes per annum of aluminum salt slag and aluminum black dross within an economic radius. Rail availability may further extend this economic distance
Kentucky Business Investment Program preliminary approval for US$82 5,000 performance-based incentive
Local government pledge of US$250,000 for infrastructure-related expenses
MHM Metals fully-owned subsidiary Alreco confirms the property acquisition for construction of the first US salt slag and black dross recycling facility. Salt slag and black dross are byproducts of the secondary aluminum industry. Alreco processes the salt slag and black dross into aluminum, salt and potash flux and aluminum oxide - all valuable commodities that can be re-used. The process is 'closed-loop', with nothing being diverted to landfill, and is cost competitive to the cost of landfilling.
It is anticipated the project will create at least 30 new jobs through the investment of approximately $25 million.
After assessing over 30 sites throughout the middle Tennessee and southern Kentucky region. The Russellville Site has become the preferred location for plant construction. Factors that contributed to this include:
The large acreage provides Alreco the opportunity :to grow and assimliate planned future technology developments
Government support and incentives. Not only financial but also the pro-business environment in
Logan County
A highly skilled local workforce and availability of workers
Availability of rail. With a high-quality rail operator
Availability of ample electricity supplies to the property for initial and future requirements
While Alreco had initially favored a site in southern Tennessee close to two large salt slag producers, management made the strategic decision to locate further north. The Russellville location remains an economic distance from these two secondary aluminium companies, but makes the facility less dependent on volumes produced by these two companies by introducing additional salt slag and black dross producers further north.
The Kentucky Economic Development Finance Authority has preliminarily approved Alreco for tax incentives of up to $825,000 through the Kentucky Business Investment program. The performance-based incentive allows Alreco to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
The City of Russellville, Logan County and the Logan County Industrial Development Authority have approved a further $250,000 infrastructure grant to Alreco. These funds will be paid against expenses incurred for development of site infrastructure including a rail spur, electrical transmission, water and gas lines and site preparation works up to the agreed $250,000 cap.
Alreco is working with engineering and environmental consultants to confirm the timeframe for plant construction and commissioning. The anticipated processing capacity of the Russellville facility remains 200,000-250,000 tonnes per annum and potentially higher in due course. The company expects to increase capacity over time, with the installed capacity met as additional contracts are signed.

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