JW Aluminum, which started an ambitious $300 million expansion at the metal maker’s Goose Creek plant with the implementation of anti-dumping duties on Chinese-made aluminium, says that its expansion is well on track and is likely to be over by three years.
The expansion will double the capacity at the plant while relying solely on recycled aluminium for its raw material. New, state-of-the-art equipment was transported to the site last week and the new expansion will produce a continuous ribbon of flat-rolled aluminium for the construction industry. The expansion will make JW aluminium one of the most high-tech and environmentally friendly continuous cast facilities in the world.
JW Aluminum is replacing its old equipment without halting the production. The company is moving its corporate headquarters to Daniel Island, which will oversee operations at four U.S. sites.
The company attributes this quick expansion to the imposition of import duties which compelled domestic producers expand capacities and boost sales.
A study by the Organization for Economic Cooperation and Development (OECD) found Chinese aluminium industry received more than US$70 billion in subsidies between 2013 and 2017. The overcapacity had depressed aluminium prices and boosted export to the U.S. leading to domestic capacity cuts.
Lee McCarter, CEO at JW Aluminum convinced the big investment firms that own JW Aluminum — Goldman Sachs and KKR among them for an upgrade and expansion in order to rise to the occasion when tariffs were implemented.
JW Aluminum closed on US$285 million in 2018 in financing to fund the expansion.
“A lot of things had to change to compete in this new world,” McCarter said. “We’re doing the investment that will make us the most competitive producer in the world.”
Earning at JW Aluminum has nearly doubled in just the past three years. McCarter is optimistic about building and construction sector growth which will boost demand for their products. With or without the duties in place, they hope to remain competitive after the upgrade.
JW Aluminum currently makes rolled aluminium products for about 250 North American customers, primarily catering to B&C, air-conditioning and packaging markets.
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