In December last year, a US$250 million incentive package was allotted for Lotte Aluminum Materials USA by the Elizabethtown City Council, which is at present being revised for an ordinance of US$450 million. The Kentucky-based aluminium sheets and foil manufacturer has surpassed the prerequisite amount to construct its plant at the T.J. Patterson Industrial Park, and this incentive revision is in adherence with that.
The move would authorize the sale and issuance of up to $450 million of the city's industrial building revenue bonds for the company. City Attorney Ken Howard confirmed that this bond would not affect the bonding capacity of the city or its bond rating.
The City Attorney Ken Howard exclaimed about the action in a statement released beforehand: "The industrial revenue bond, if they are going to issue it for property and equipment, the property and equipment then gets transferred to the city, and then we issue the bonds. We will have a lease agreement between the city and these companies that requires them to pay the lease payments."
Lotte has found that the cost of building its plant in the T.J. Patterson Industrial Park in Elizabethtown is much higher than initially anticipated, hence the need for the new ordinance. The company's application for the bonds would relieve them of the responsibility of paying city property tax, and they could also receive a curtailed state tax. However, the company is still obligated to pay the property tax for Hardin County Schools.
Lotte's new manufacturing facility, which is currently under construction, will provide 122 jobs and occupy a 40-acre tract of the T.J. Patterson Industrial Park. The company will supply BlueOval SK Battery Park in Glendale with 36,000 tons of cathode ultra-thin aluminium foil for electric vehicle batteries annually.
If you wish to learn more about the aluminium downstream segment, please have a look at AL Circle's detailed report on aluminium foil and sheets; Aluminium Foil and its End Uses.
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