FRANKFORT, Ky. (KT) – Gov. Andy Beshear announced Thursday the $15 million awarded to a company in the final days of the 2017 General Assembly for an aluminum plant in the Ashland area that was never built has been recouped.
“Today, I am announcing the commonwealth has secured the return of Gov. Matt Bevin administration’s investment in what was known as the Braidy Industries Project in northeastern Kentucky, that never materialized,” Beshear said during a Capitol press conference where he also announced some other economic news.
The state has been awarded $15 million for the failed Braidy Industries project. The 205 acres of land where Braidy was to be located was also donated to the Northern Kentucky Regional Industrial Authority, said Gov. Andy Beshear. "There is already interest in it, and my promise to the people of the Ashland region is when we make an announcement, it’s going to be real." (Kentucky Today/Tom Latek)
In addition, Steel Dynamics, Inc., which entered into a joint venture with Unity Aluminum (as Braidy is now known), has reached an agreement in principle to donate the property upon which the mill was to be built – approximately 205 acres and a spec building – to the original owner, the Northeast Kentucky Regional Industrial Authority. The parties also are negotiating the industrial authority’s acquisition of additional parcels owned by the company below the original acquisition cost.
“This land is prime, and it is ready,” Beshear said. “Had we had possession of it, we could have already located something else on it by now. There is already interest in it, and my promise to the people of the Ashland region is when we make an announcement, it’s going to be real. Jobs are going to be real, and it’s going to be real exciting for the community.”
The Governor called this a win-win situation. “We got the Commonwealth’s investment back. We got the property back to locate something real and exciting. This is a better outcome than I ever thought was possible. I want to thank everybody for working on it, and we continue to talk to Steel Dynamics, trying to be a part of their future plans and we appreciate the dialogue they opened with us.”
He added, “I believe we will secure a significant project, and it might not be just one. It could be that property allows for multiple projects. What I do know is what a great site it is. I have full confidence that we will locate something on it and do so soon.”
Sen. Chris McDaniel, who fought to recoup the investment, said he was proud of the efforts of the state Senate to keep the issue in the forefront.
"I am proud of the efforts of the Kentucky Senate in recent years to keep attention on Braidy Industries and Unity Aluminum's deceptions and failure to follow through on their promise to Kentucky's taxpayers," McDaniel said. "I and others pulled no punches when representatives testified before the Appropriations and Revenue Committee when they could not answer questions and were continually disingenuous on why they had not yet returned this $15 million. We are certainly happy to have taxpayers' dollars returned—albeit far too late—but remain utterly disappointed the people of Ashland and eastern Kentucky will not have an aluminum mill they, and lawmakers, were led to believe would come to fruition."
Beshear also announced new job creation in Kentucky’s coal industry as River View Coal LLC, which operates an underground coal mine in Union County, will expand its footprint in the state with a new facility in Henderson County. It will create 260 well-paying jobs with a $35 million investment. The company will build a new 30,000-square-foot facility on 56 acres. Work is expected to begin in April 2023 and be completed by December 2024.
In addition, he said Elevate Windows and Doors LLC will invest over $16 million and create 203 full-time jobs with a new production and distribution operation in Hopkinsville. Company leaders will acquire an existing 100,000-square-foot building on 22 acres, as they expand Elevate’s manufacturing and distribution footprint throughout the southern United States.