Braidy Industries seeks about US$800 million Federal loans for the aluminium rolling mill in Kentucky

A Courier-Journal reports that Braidy Industries that is constructing a massive aluminium rolling mill in north-eastern Kentucky in the U.S. is now seeking a new loan of up to US$800 million. The company is applying for the loan under a federal program that hasn’t given out a loan to any company in almost eight years.

Kentucky governor Matt Bevin considered the aluminium mill planned for Greenup County as a major win in his administration’s efforts in order to create new jobs and attract more industries and business to the Commonwealth.

The report says Braidy has applied for a loan of about US$800 million from the U.S Department of Energy’s Advanced Technology Vehicles Manufacturing direct loan program. The amount will cover almost half of the estimated $1.7 billion cost to build the aluminium rolling mill.

This federal loan program was created to lend money to businesses that make certain kinds of fuel-efficient lightweight cars or manufacture and supply parts for such vehicles. Since Braidy’s rolling mill is planning to supply lightweight aluminium sheet for automakers and create more than 500 jobs.

Companies like Ford, Nissan, and Tesla, have received loans under this program in the past. The programme also offered two loans to companies that shut down without repaying millions of dollars in taxpayer funds they borrowed. President Trump’s administration has suggested ending the loan program and no loan was granted in last eight years.

It is to be noted that the state government has invested about US$15 million in the Braidy plant since June 2018.