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. Someone didnt deliver something quite recently, in any event. The legislative leader said he understood that Bouchard could have done more because of his number of shares in the company.. Century Aluminum said the Hawesville plant is its largest "U.S. smelter and the largest producer of high purity primary aluminum in North America.". 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. Ive been very concerned about it for a while. What Happens When You Put Aluminum Foil in the Microwave? ASHLAND The parent company of Steel of West Virginia has announced plans to build and operate an aluminum mill in the southeastern U.S., after reaching a deal with the company that so far has failed to deliver on its promise to put the plant in Kentucky even with financial backing from the state. The county's judge-executive, Johnny Roberts, told the newspaper the company gave him no assurances the plant would reopen after that. Gov. The business owners also emphasized the importance of the aluminum plant to the local economy. McConnell Said No to Money for Miners, Yes to Russian-Backed All rights reserved. aluminum plant The agreement struck with the Treasury Department gave the Swiss commodities firm Glencore, a company that has done business with Deripaska for years and whose CEO previously sat on Rusal's board, some of Deripaska's lost shares. The company, in its press release Thursday, named its current president, Kentucky native Tom Modrowski, as its interim CEO. On Thursday, Braidy Industries released a statement saying CEO and Board Chairman Craig Bouchard had stepped down. 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. 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. A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. Josh James fell in love with college radio at Western Kentucky University's student station, New Rock 92 (now Revolution 91.7). Have the latest local news delivered every afternoon so you don't miss out on updates. 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. The company planned to have the mill open in 2020, but underwent a management shakeup and name change in its long and ultimately unsuccessful quest to raise sufficient capital to proceed. Steel Dynamics did not respond to emails and calls seeking comment on where its new mill would be located. Braidy CEO disputes he stepped down from aluminum October 06, 2021 1:39 PM. Rusal, the aluminum company partially owned by Russian oligarch Oleg Deripaska, announced plans to invest around $200 million to build a new aluminum plant in Kentucky just months after the Trump administration removed it from the U.S. sanctions list. Invalid password or account does not exist. Wikipedia In the small town of Greenville, Kentucky, sits a large aluminum plant that was once a major employer in the area. Bill orders Kentucky to recover $15 million in stalled 'False promises' | Braidy Industries says founder misled board While the initial proposed site is too small for the project, the area has additional sites that would work, a local official said Thursday. However, this investment was not enough to revive the plant, and production levels continued to decline. Andy Beshear made a pitch Thursday to a steel company that took over plans to build an aluminum plant once promised to Kentucky, The aluminum mill is still on course for its expected completion date of 2021, the company said. Rusal's involvement has been controversial from the start, after it was revealed that the company had been subject to sanctions. Matt Bevin, KY legislators got played badly on aluminum plant. Announces New Aluminum End Manufacturing Facility 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. Roberts said the company told him that its power costs have risen dramatically this year. 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. Steelmaker moves ahead on effort to build plant in Southeast; Ky. officials say they wont give up. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Employees learned of the pending layoffs on Wednesday. The Russians said that they would build the largest aluminum plant in the United States in Kentucky. Quotes displayed in real-time or delayed by at least 15 minutes. However, in 2019, the plant closed its doors for good, leaving many in the community wondering what happened. Winds W at 10 to 20 mph. We'd love to hear eyewitness Chance of rain 60%.. Cloudy with light rain this evening. 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. 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. John explained that the plant had been struggling financially since the late 2000s. In 2011, the plant was acquired by a new company, which invested heavily in modernizing the facility. Braidy Industries Inc. CEO Craig Bouchard, right, and then-Republican Kentucky Gov. The closure of the aluminum plant in Kentucky was the result of a series of events that began in the late 2000s. It also asked about the status of Rusal'sinvestment in the mill, whether Braidy intends to continue its business relationship with that firm, and how Braidy's efforts to secure financing for the mill are proceeding. So what changed? Asked if Bouchards move was driven by shareholders in the company, Stivers said he did not know. High near 50F. They have talked to some local officials that are very confident that the project is moving forward, said Osborne. Until it gets built, you always have to have concerns, he said. Until I see the board minutes, I dont know what Bouchards status is, she said. 'We Don't Think About A Plan B': Braidy Execs Offer Reassurance, Few Details In Hearing. Deripaska, the Rusal co-owner, pops up many times in the Senate committee's report. Commercial production is planned to begin in early 2025, the company said. Despite these efforts, the plant continued to struggle financially. 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. Still, analysts have expressed concern that Deripaska, who was sanctioned in April 2018 for attempting to meddle in the U.S. elections, may still wield influence over his companies from behind the scenes. Braidy officials have said they expect the plant to cost $1.7 billion and bring hundreds of jobs to the Ashland area. 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 Steel Dynamics mill is expected to produce 650,000 metric tons of low-carbon flat rolled aluminum each year nearly double the original proposal for the Kentucky location, the Unity spokesperson said. The Board and CEO Tom Modrowski are committed to the Ashland community and focused on building the Kentucky mill.. ", Steurer said in an email Wednesday that previous comments McConnell has made about Rusal still stand. Market data provided by Factset. Kentucky Aluminum Plant Idling, Laying off 600 Workers - US News Be Nice. Kentucky's state government also has a financial stake in the mill's future, followinga direct investment it made in Braidy in 2017. The Russian bank VTB, nicknamed Putin's piggy bank, also got a stake in Deripaska's companies. Local politicians were quick to point fingers and assign blame for the plants closure. Best States is an interactive platform developed by U.S. News for ranking the 50 U.S. states, alongside news analysis and daily reporting. 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. | Understanding the Risks and Benefits of Switching to an Aluminum-Free Deodorant, Exploring the Benefits of 80/20 Aluminum for Construction Projects. Don't knowingly lie about anyone We also spoke with several local business owners who were affected by the closure of the aluminum plant. Some experts have claimed that it is possible Deripaska could use his ties with these companies to exert some influence over Rusal. Our shady former (R) Governor was on that deal and sunk $15M KY tax dollars in it. Site content may be used for any purpose without explicit permission unless otherwise specified. Incidentally, Kentucky is the 27th state and the last Southern state to enact right-to-work legislation. The plant, with about 628 workers, is the second-largest employer in Hancock County, the Owensboro Messenger-Inquirer reported. 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. No one would do business that way. Democrats were investigating McConnell and the Russian investment, and that investigation should continue for the sake of US national security. Kentucky has its own stake in the project a $15 million investment that then-Gov. suspending investments as it waits for U.S. partners to raise funds, The closure of the aluminum plant in Kentucky had political ramifications as well. Russia's Rusal invests $200 million in Kentucky plant after US lifts Asked to elaborate, Stivers said, I assume whatever this corporate entity or corporate structure is, he owns a substantial amount of shares. Legal Statement. All rights reserved. Matt Bevin (R) boasted was as significant as any economic deal ever made in the history of Kentucky.. And three months later, Rusal announced plans for an extraordinary partnership with Bouchards company, providing $200 million in capital to buy a 40 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. Now, state lawmakers are trying to figure out how to recoup taxpayer money, in case the project never gets off the ground. You have permission to edit this article. Click here to stay informed and subscribe to Herald-Dispatch. Kentucky aluminum plant Rusal, the aluminum company partially owned by Russian oligarch Oleg Deripaska, announced plans to invest around $200 million to build a new aluminum plant 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. The Russians have cut off the cash. Both Stivers and Osborne said they did not know of any request from the company for more state assistance or why Bouchard stepped down. Earlier:Braidy Industries gave former$6 million to sever ties with company. Gov. Threats of harming another No racism, sexism or any sort of -ism Maybe for Monday consumption. By the next day, McConnell hadsuccessfully blocked the bill, despite the defection of 11 Republicans. We'll send breaking news and news alerts to you as they happen! Steelmaker moves ahead on effort to build plant in Southeast; Ky Just weeks after the Treasury Department announced the official de-listing of Rusal, the company announced a $200 million investment in the Braidy Industries Copyright 2021 WSAZ. 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. 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. We won't share it with anyone else. 2023 FOX News Network, LLC. WP was on it, though it took a few months. Will The Real CEO Of Braidy Industries Please Stand Up? "I guess if it hadnt been for the cost of power, we would still be rocking and rolling.". In 2008, the plant underwent a major restructuring effort, which included layoffs and cost-cutting measures. Submitting this form below will send a message to your email with a link to change your password. Russian Company Bankrolling Troubled Kentucky The platform is designed to engage citizens and government leaders in a discussion about what needs improvement across the country. But the company has still not reached their goal of $1 billion for construction and equipment. Matt Bevin, but current Gov. Surprise! Russia cancels Kentucky aluminum plant after Without it, they said, the area would be unable to attract new businesses and investment. The county's Judge-executive, Johnny Roberts, told the newspaper the company gave him no assurances the plant would reopen after that. 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. The long-delayed aluminum plant project near Ashland, Kentucky is facing another setback. Fox News Flash top headlines are here. The Democratic Party also mentioned a 2019 Politico report about how two people who used to work on McConnell's staff lobbied the federal government on Braidy's behalf. This story was originally published January 31, 2020, 12:09 PM. Im sorry for the stress that was created in Ashland yesterday. 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. With a Putinesque smile, Rusal explains itssuspendingits investment in theboondoggleproject while it waits for other partners to raise funds. Kentucky pledged $15 million in taxpayer dollars toward the project under former Gov. The story of Braidy Industries and its plans to build a $1.7 billion aluminum mill in northeastern Kentucky has always been complicated. United Co. Rusal International PJSC announced the move on Unity Aluminum, formerly known as Braidy Industries, in a call on Wednesday. Low 43F. LOUISVILLE, Ky. Gov. No ones attorneys would ever advise them to do business that way. Craig.. 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. Century Aluminum has announced plans to shut down its Hawesville smelter for 9 to 12 months starting in August. We celebrated that, said Andy Meserve, president of United Steelworkers Local 9423. Prior to the closure of the aluminum plant, the local job market was relatively strong. Many of the former employees were unable to find work elsewhere and had to leave the area in search of employment. The plant provided well-paying jobs and allowed people to stay in the area rather than having to move away in search of employment. 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. The plant, with about 628 workers, is the second-largest employer in Hancock County, the Owensboro Messenger-Inquirer reported. 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. Aluminum Your email address will not be published. Indiana-based Steel Dynamics said Tuesday that investment for its project is estimated to reach $2.2 billion, which includes two supporting aluminum slab centers to be built elsewhere. Quotes displayed in real-time or delayed by at least 15 minutes. smelter and the largest producer of high purity primary aluminum in North America.. Meanwhile, at least one of the trustees that the Office of Foreign Assets Control appointed to ensure that Deripaska does not exercise influence on the company's board is linked to a law firm that has worked with the oligarch and his companies for years. They suggested that the local government should do more to incentivize businesses to stay in the area and invest in the community. Copyright 2022 TheAssociated Press. An aluminum plant in Kentucky laid off 600 people. Our current awesome (D) Governor got that money back in September. The long-delayed aluminum plant project near Ashland, Kentucky is facing another setback. 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 Ashland Alliance is the chamber of commerce group representing Boyd and Greenup counties. Russia cancels Kentucky aluminum plant after Moscow Mitch fails to throw election, Ways to get involved in the upcoming elections. Sanctioned Russian Oligarch's Company to Invest Millions in New Exploring the Many Uses of Aluminum, Aluminum Composite: Exploring the Benefits and Uses of This Durable Material, What Happens When You Stop Using Deodorant With Aluminum? Earlier this month, The New York Times reported the Treasury Department had allowed around $78 million worth of company shares to be transferred to a trust fund belonging to Deripaska's children, despite a previous statement from Treasury Secretary Steve Mnuchin claiming that the oligarch's children would "in no way benefit" from sanctions relief. The story of Braidy Industries and its plans to build a $1.7 billion aluminum mill in northeastern Kentucky has always been complicated. ), Surprise! Rusal was under U.S. sanctions until early 2019 and has ties to a Russian oligarch close to President Vladimir Putin. During the defense's cross-examination of E. Jean Carroll, Trump's attorney asked the writer why she "did not scream" when she was "supposedly raped.". The news is only the latest twist for the troubled project, which has been plagued by fundraising questions and the ouster of the CEO formerly overseeing the venture. A Russiancompany that has invested in Braidy Industries' planned aluminum rolling mill in Eastern Kentucky was identified as a proxy of the Kremlin in a new report the Senate Intelligence Committee released this week. The effect of this was felt throughout the entire community, as the local economy suffered greatly. FRANKFORT, Ky. (AP) Gov. Reach reporter Morgan Watkins: 502-582-4502; mwatkins@courierjournal.com; Twitter:@morganwatkins26. 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. However, in June, Century announced it was temporarily shutting down production at its largest U.S. plant, an aluminum smelter in nearby Hawesville, Kentucky. Check out what's clicking on Foxnews.com. See latest map, NFL Draft: Reaction to Tennessee Titans taking Kentucky quarterback Will Levis, After being drafted by Commanders, Chris Rodriguez knows his mom would be proud. Civil & Environmental Consultants wins aluminum-plant contract Powered and implemented by FactSet Digital Solutions. Jason has a Bachelors Degree in Political Science. Russian Oligarch Cancels Funding In Kentucky Aluminum The U.S. government previously imposed sanctions on Rusal and its parent company, EN+ Group. Kentucky Gov. An oligarch with ties to Putin promised a $200 million investment in the state and hundreds of jobs. 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. And three months later, Rusal announced plans for an extraordinary partnership with Bouchards company, providing $200 million in capital to buy a 40 As for Unitys role,Steel Dynamics said the plant will supply the beverage, automotive and common alloy industrial sectors. More:Braidy Industries would bring hope and opportunity back to Appalachia and Kentucky. What Happened to the Aluminum Plant in Kentucky? A Look at the The report says Paul Manafort Trump's former campaign chairman worked for Deripaska in the past and was in close contact with a Russian intelligence officer, Konstantin Kilimnik,whom the report describes as having been "Manafort's primary liaison to Deripaska ". Please avoid obscene, vulgar, lewd, Overgrown signs and fencing "The embarrassment is just going to keep growing over this," Laura Harth, the campaign director at Safeguard Defenders, told Newsweek. Kentucky aluminum plant cuts off production, lays off 600 workers Keep it Clean. Century Aluminum has announced plans to shut down its Hawesville smelter for nine to 12 months starting in August. Bevin asked us to do that has not come to fruition. A U.S. Securities and Exchange Commission report Braidy filed in June said Rusal had provided $75 million so far forthe mill project as of Dec. 31, 2019, but had discontinued further contributions until Braidy secures another $300 million in funding.