what happened to the aluminum plant in kentucky

On Friday, it turned bizarre. The platform is designed to engage citizens and government leaders in a discussion about what needs improvement across the country. Market data provided by Factset. The project will be funded with available cash and cash flow from operations, the company said. 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. 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. They all expressed disappointment and frustration with the situation, noting that the closure had put a strain on their businesses. Your email address will not be published. PLEASE TURN OFF YOUR CAPS LOCK. The best states in the U.S. come from coast to coast. Braidy Industries Inc. CEO Craig Bouchard, right, and then-Republican Kentucky Gov. Winds WSW at 10 to 20 mph. A company planning a new facility in Kentucky is set to partner with a Russian company once suspected of meddling in the 2016 presidential election.The, Braidy Industries says it has about four months to raise $300 million in equity capital for a proposed aluminum mill in Kentucky or risk losing a large, Gov. Please avoid obscene, vulgar, lewd, Now Deripaska could be bringing his aluminum acumen to Kentucky. 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. He also referred The Courier Journal to a statement McConnell released Tuesday that praised the Senate Intelligence Committee's members for keeping their investigation "out of thepartisan spotlight and focused on the facts.". A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. On Friday, it turned bizarre. The closure of the aluminum plant in Kentucky had a significant economic, environmental, and political impact on the local community. High near 50F. 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. 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. 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. To ensure that the area can continue to thrive, the local government must take steps to mitigate the impacts of the closure and create a better environment for businesses to invest and operate in the area. Threats of harming another The purpose of this article is to explore the With a Putinesque smile, Rusal explains itssuspendingits investment in theboondoggleproject while it waits for other partners to raise funds. 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. This material may not be published, broadcast, rewritten, or redistributed. Your e-mail address will be used to confirm your account. Andy Beshear has released documents related to Kentuckys investment in Braidy Industries. Four years later, however, there is still nothing to show for it. I guess if it hadnt been for the cost of power, we would still be rocking and rolling.. Gov. accounts, the history behind an article. 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. Until it gets built, you always have to have concerns, he said. Bouchard said on his Facebook page at 10:42 a.m. that he had just stepped off an international flight Friday morning and he did not authorize the press release that was issued yesterday. ), Surprise! Kentucky has its own stake in the project a $15 million investment that then-Gov. Best States is an interactive platform developed by U.S. News for ranking the 50 U.S. states, alongside news analysis and daily reporting. And three months later, Rusal announced plans for an extraordinary partnership with Bouchards company, providing $200 million in capital to buy a 40 percent stake in the new aluminum plant in Ashland, Ky. a project Gov. In 2008, the plant underwent a major restructuring effort, which included layoffs and cost-cutting measures. 2023 FOX News Network, LLC. Discovering the versatile world of aluminum. Several Democrats in Congress quickly expressed concern about the planned investment. Osborne, R-Prospect, said he talked to the governors office early Friday morning about Bouchard. 'We Don't Think About A Plan B': Braidy Execs Offer Reassurance, Few Details In Hearing. Braidy officials have said they expect the plant to cost $1.7 billion and bring hundreds of jobs to the Ashland area. First Republic in Limbo as US Regulators Juggle Bank's Fate, 'Waste of Time': Community College Transfers Derail Students, Rising Mississippi River Continuing to Test Flood Defenses. 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. However, this investment was not enough to revive the plant, and production levels continued to decline. 2023 FOX News Network, LLC. "Taken as a whole, Manafort's high-level access and willingness to share information with individuals closely affiliated with the Russianintelligence services, particularly Kilimnik and associates of Oleg Deripaska, represented a grave counterintelligence threat," it also says. All rights reserved. United Co. Rusal International PJSC announced the move on Unity Aluminum, formerly known as Braidy Industries, in a call on Wednesday. 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. Legal Statement. We celebrated that, said Andy Meserve, president of United Steelworkers Local 9423. Craig.. You've successfully subscribed to this newsletter! Century Aluminum has announced plans to shut down its Hawesville smelter for nine to 12 months starting in August. So what changed? In addition to Hayes, Cameron addressed his letter to the cabinets Partnership Board, a board made up of 13 public-private sector mebers to provide strategic governance to the cabinet, and Commonwealth Seed Capital, a group that uses state money to invest in the early stages of businesses in Kentucky. Required fields are marked *. They are still excited about the project and expect it to be built, expect it to be completed. There's a good end to that aluminum plant story at least. 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. Jason is the managing editor. The local government could invest in clean-up efforts, such as installing air filtration systems and monitoring water quality. On Friday, Bouchard pushed back. Tweets from https://twitter.com/heralddispatch/lists/hd-news-4. Be Proactive. 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. Some experts have claimed that it is possible Deripaska could use his ties with these companies to exert some influence over Rusal. Andy Beshear is requesting a deep dive into the project. "The embarrassment is just going to keep growing over this," Laura Harth, the campaign director at Safeguard Defenders, told Newsweek. The U.S. government previously imposed sanctions on Rusal and its parent company, EN+ Group. 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 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. Save my name, email, and website in this browser for the next time I comment. Despite these efforts, the plant continued to struggle financially. The plant along the Ohio River had recently increased production and in April announced an addition of 60 jobs. suspending investments as it waits for U.S. partners to raise funds, This led to a decrease in the local population and had a negative impact on the local economy. We havent given up.. Our shady former (R) Governor was on that deal and sunk $15M KY tax dollars in it. Rusal, the aluminum company partially owned by Russian oligarch Oleg Deripaska, announced plans to invest around $200 million to build a new aluminum plant "I guess if it hadnt been for the cost of power, we would still be rocking and rolling.". The closure of the aluminum plant in Kentucky was the result of a series of events that began in the late 2000s. The Russian bank VTB, nicknamed Putin's piggy bank, also got a stake in Deripaska's companies. All rights reserved. Copyright 2022 TheAssociated Press. The closure of the aluminum plant in Kentucky had political ramifications as well. 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. A large aluminum plant in Kentucky is temporarily halting production and laying off more than 600 workers due to rising energy costs. The U.S. Senate voted down a measure opposing the plan to end thesanctions against Rusal and EN+ Group in January 2019. And a significant number of its steel customers also have demand for aluminum, it said. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. What You Need To Know Don't knowingly lie about anyone Overgrown signs and fencing Through interviews with former employees, local businesses, and politicians, we gained insight into the causes of the closure and its effects on the local economy, environment, and politics. Asked if Bouchards move was driven by shareholders in the company, Stivers said he did not know. Citing an "unprecedented rise in global energy prices," Century Aluminum in Kentucky announced they will be laying off 628 Hawesville Smelter employees starting August 5. Local businesses were also affected by the closure of the plant, as they relied heavily on the plants employees for customers. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. The plant, with about 628 workers, is the second-largest employer in Hancock County, the Owensboro Messenger-Inquirer reported. The announcement this week was the latest chapter in what has been a long, tortuous effort to build a new aluminum plant in a region struggling to create jobs, but officials in Kentucky arent ready to give up yet. Steelmaker moves ahead on effort to build plant in Southeast; Ky. officials say they wont give up. Kentucky Aluminum Plant Idling, Laying off 600 Workers. With fewer people in the area, businesses were forced to make drastic cuts or close altogether. The plant along the Ohio River had recently increased production and in April announced an addition of 60 jobs. Quotes displayed in real-time or delayed by at least 15 minutes. We want their jobs to be in Kentucky.. 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Jean Carroll Case. 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. They suggested that the local government should do more to incentivize businesses to stay in the area and invest in the community. This is one of the first things Gov. Unity had intended to build an aluminum mill near Ashland but struggled for years to line up sufficient financing for the project. Bloomberg News reported: The Russiancompany backing an aluminum project in Kentuckysaid its suspending Low 43F. 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. 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 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? each comment to let us know of abusive posts. "The Board will be two-thirds/one-third independent of Deripaska, Deripaska will not receive any dividends for as long as he remains subject to sanctions, and the Company and its operations will remain under the scrutiny of U.S. regulators," the document reads. This content was created by a Daily Kos Community member. John believes that the closure of the plant was inevitable and that the decision was made by the companys board of directors. The legislative leader said he understood that Bouchard could have done more because of his number of shares in the company.. By Herald-Leader readers. Powered and implemented by FactSet Digital Solutions. 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. 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 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. While the initial proposed site is too small for the project, the area has additional sites that would work, a local official said Thursday. The Russians have cut off the cash. | Understanding the Risks and Benefits of Switching to an Aluminum-Free Deodorant, Exploring the Benefits of 80/20 Aluminum for Construction Projects. No racism, sexism or any sort of -ism Market data provided by Factset. See also:Kentucky planning to implement a $400 unemployment supplement. No ones attorneys would ever advise them to do business that way. Quotes displayed in real-time or delayed by at least 15 minutes. The county's judge-executive, Johnny Roberts, told the newspaper the company gave him no assurances the plant would reopen after that. Barker is the executive chairman of Rusal and its parent company EN+. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. Submitting this form below will send a message to your email with a link to change your password. WP was on it, though it took a few months. 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. Russia cancels Kentucky aluminum plant after Moscow Mitch fails to throw election, Ways to get involved in the upcoming elections. Steel Dynamics did not respond to emails and calls seeking comment on where its new mill would be located. Both Stivers and Osborne said they did not know of any request from the company for more state assistance or why Bouchard stepped down. 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. 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. Steel Dynamics also hopes customers will locate operations at the mill site to save money, also contributing to the need for more space, the Unity spokesperson said. Now its pumping $200 million into a new project in Kentucky. Chance of rain 80%. The effect of this was felt throughout the entire community, as the local economy suffered greatly. However, in 2019, the plant closed its doors for good, leaving many in the community wondering what happened. All rights reserved. And McConnell told reportersin May 2019 that his decision to support lifting the sanctions was unrelated to "anything that might happen in my home state. The Senate committee's report, which examines Russian efforts to interfere in America's 2016 presidential election,says: "Deripaska's companies, including RUSAL, are proxies for the Kremlin, including for Russian government influence efforts, economic measures, and diplomatic relations.". Instead, the people of Kentucky got nothing. Regardless of the cause, the closure of the plant had a major impact on the local election cycle. October 06, 2021 1:39 PM. Concerns magnified, particularly in Washington, when the Russian aluminum company Rusal promised to invest $200 million in the company. This is the name that will be displayed next to your photo for comments, blog posts, and more. WASHINGTON Democratic lawmakers called on the Trump administration on Thursday to review an investment in Kentucky by a Russian aluminum company that "What did he know, and when did he know it? That, of course, has been difficult for a good two years ever since Kentuckians who saw only Obamacare standing between them and endless weekends visiting friends and family in opioid rehabilitation facilities elected Democrat Andy Beshear governor in 2019, who promptly vowed to recoup the $15 million his predecessor had tossed in the smelting pot. 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. The closure of the aluminum plant also had environmental implications. According to a Bloomberg report, Rusal, the formerly blacklisted Russian Share with Us. 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. 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. smelter and the largest producer of high purity primary aluminum in North America.. Commercial production is planned to begin in early 2025, the company said. By STEVE PEOPLES and ZEKE MILLER 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 ". But the Ashland-area site about 240 acres is insufficient to meet the size and scope requirements of the new project, a Unity spokesperson told The Associated Press 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. The plant opened in 1975 and over the years employed hundreds of people, making it an integral part of the local economy. The materials had been the subject on an ongoing court, Conflicting accounts about the status of Braidy Industries CEO Craig Bouchard have led to confusion. 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. The purpose of this article is to explore the closure of the aluminum plant in Kentucky and its economic, environmental, and political implications. What Happens When You Put Aluminum Foil in the Microwave? 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. Andy Beshear said through a spokesman that had been told the resignation of Bouchard will not impact the current status of the project.. Rusal, the largest producer of aluminum outside China, will help fund and supply a low-carbon This material may not be published, broadcast, rewritten or redistributed. So far, though, there have been no jobs, no funds and even more doubts. An oligarch with ties to Putin promised a $200 million investment in the state and hundreds of jobs. Democrats were investigating McConnell and the Russian investment, and that investigation should continue for the sake of US national security. 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. Deripaska, the Rusal co-owner, pops up many times in the Senate committee's report. 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 Committee found that Manafort's presence on the Campaign and proximity to Trump created opportunities for Russian intelligence services to exert influence over, and acquire confidential information on, the Trump Campaign," the report says. For more discussion about this story join our Rachel Maddow and MSNBC group. 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. Fox News Flash top headlines are here. Backers have touted the plant, which was slated for completion last year, as one that could create up to 550 jobs. The business owners also emphasized the importance of the aluminum plant to the local economy. Earlier:Braidy Industries gave former$6 million to sever ties with company. 2023 www.courier-journal.com. 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 But the company has still not reached their goal of $1 billion for construction and equipment. Kos Media, LLC. The deal was originally brokered under former Gov. Rusal was under U.S. sanctions until early 2019 and has ties to a Russian oligarch close to President Vladimir Putin. The recently passed right-to-work legislation has played a significant role in bringing the plant to Kentucky. We spoke with John Smith, a former employee of the aluminum plant who worked there for 10 years before its closure. Prior to the closure of the aluminum plant, the local job market was relatively strong. 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. Naturally, when you own large blocks of a corporation, you have substantial voting rights. The Courier Journal sent Braidy Industries a request for comment concerning the Senate committee's report. 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. ", Robert Steurer, a spokesman for McConnell, told The Courier Journal last year that the senator has said Rusal's investment in Braidy's mill did not play a role in his stance on the sanctions against the Russian company.

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