Kaiser plans $5.8 million upgrade, expected to add 7 new jobs

Celebrating its fiftieth year in North Texas, Kaiser Aluminum received a six-figure birthday present from the Sherman Economic Development Corp. Tuesday morning. The SEDCO Board of Directors voted unanimously to enter into a $232,000 agreement with Kaiser to help offset the cost of a $5.8 million upgrade that will add seven jobs to its south Sherman facility.

“We’ve been working with Kaiser Aluminum for several years on their plans and growth — they’ve been in the market for a very long time, and we’ve not yet had the opportunity to help them in their growth plan,” said SEDCO President Scott Connell. “It’s a great company that’s been here a very long time, and we’re excited for their future growth plans.”

Kaiser Aluminum operates 12 North American plants and has significantly expanded its footprint in Sherman’s Progress Park since taking over a warehouse there from Capital Products in 1964. The 145-employee plant, which makes components for aircraft and automobiles, has seen that latter category of products skyrocket in recent years, said Kaiser Plant Manager Max Gorman.

New federal regulations requiring higher fuel efficiency — which will raise average miles per gallon in new cars and trucks to 54.5 by 2025, with an average retail cost to consumers of $2,000 per vehicle — have played a large role in that growth, said Gorman. In order to reduce vehicle weights and thus increase fuel inefficiency, car manufacturers are substituting lightweight aluminum bodies for heavier metals such as steel.

“There’s tremendous growth in the aluminum extrusion markets — automotive, because of the light weighting that’s going on, it’s presenting significant growth opportunities,” said Gorman. “The Sherman facility has been moving in that direction, and so we’ve become an important part of the company’s overall growth strategy. So this investment is taking some of the existing equipment and upgrading it so that it will be capable of making automotive extrusions.”

SEDCO estimates its return on investment for the Kaiser incentive at seven years, which will be captured through increased property taxes. Grayson County records show the Kaiser facility is valued at more than $4.6 million, with another $9.1 million in manufacturing equipment.