Kentucky Gov. sees the growth of a manufacturing and engineering hub in Kentucky surrounding aluminium

Kentucky Gov. Matt Bevin expects the state of Kentucky to become a center for excellence in engineering and manufacturing, partially on the successes of a booming aluminium industry. Kentucky produces about 40 per cent of the aluminium produced in the U.S.

Already, 40 percent of the aluminum produced in the U.S. is made in Kentucky and it has all the potential to become a prime location for downstream industry that fabricates aluminium into cars, trains, airplanes, home appliances, electronics and many other applications.

"There’s no state in America that has attracted more aluminum mills, steel mills, smelters (or) foundries than has Kentucky in the last couple of years," Mr Bevin said. "Because, if we can get them here and we can produce the raw materials here, then the people who heat treat it, cold-roll it, hot-roll it, slit it, anneal it, fabricate it, bend it, weld it -- that entire supply chain -- are more likely to come here. It's more likely to be here, because, from a logistical standpoint, the product itself is here. “

The governor said this during a two-day community forum trip in western Kentucky last week. He said that local industries should take benefits from the financial incentives like international tariffs to produce metal and semi-finished metal products locally in order to grow their business successfully.

Owensboro is within 30 miles distance from Century Aluminum's Hawesville and Sebree smelters. This leaves Owensboro with all the potential to be the manufacturing growth center surrounding aluminium. Century has committed to restart three of its idled potlines in Hawesville and credited the restarting to Trump's decision to apply heavy tariffs on imported aluminium. Braidy Industries also celebrated the groundbreaking of a $1 billion aluminum rolling mill in Ashland in June. 

Bevin sees a solid growth potential for Kentucky in next few years. Greater Owensboro Economic Development Corp. interim President and CEO Sharla Wells also reiterated the growth potential for aluminium industry for Kentucky, but she also pointed towards the need to invest in diverse sectors.

Mike Baker, director of the Hancock County Industrial Foundation, said a $400 million aluminium rolling mill expansion at Aleris Corp. in Lewisport could be the reason for more auto manufacturering growth at Kentucky. The annealing lines and wide cold mill are producing a sheet metal product from lightweight alloys to be used by parts suppliers. He cited the example of Ford F-150, the all-aluminium pickup truck that depended heavily on bottom-end-chain suppliers investing in new technologies and making the auto parts.

Western Kentucky can develop a successful supply base manufacturing hub in the shadow of companies like Century and Aleris, which will house the people who produce aluminium or roll it into sheets and customers that buy those products or suppliers who help make the those products.