Unity Aluminum fails to fulfil proposed construction of $1.7 billion aluminum mill; Kentucky legislature reclaims its $15 million investment

Braidy Industries, formerly known as Unity Aluminum, is a Kentucky based aluminum manufacturing company. The company in 2017 promised to build a US$1.7 billion aluminum mill near Ashland, for which, the legislature invested around US$15 million in the company.  Craig T. Bouchard, the former CEO and founder of Unity Aluminum promised that the new aluminum mill would be completed by 2020 to produce aluminum sheet for the automotive industry. The mill was also expected to provide 550 well-paid jobs in Ashland.

Going by the recent graph, no sign of construction or production can be seen in the area. As a result of which, Kentucky legislature is now demanding back the US$15 million that were invested by the taxpayers for the project in 2017.

Unity Aluminum has also failed in meeting their goal to collect US$1 billion for construction purpose and for equipping items required for the mill. For the same purpose, the company has asked extra time from Commonwealth Seed Capital to complete their goal, the latest being by the end of March. Commonwealth Seed Capital is the entity inside the cabinet for Economic Development which made the investment of US$15 million for the aluminum mill construction in Ashland. 

On Friday, leaders of Unity Aluminum answered questions raised by the Interim Joint Committee of the legislature on the Appropriations and Revenue, which was supposed to help in carrying out the project initially.

Nate Haney, the Senior Vice President of Global Affairs and Commercial operation at Unity Aluminum expressed, that Unity Aluminum is “cautiously confident” after “a roller coaster ride over the last couple of years.”

Due to the delay in construction and failure to raise the needed amount for the project, Senator Christian McDaniel, R-Taylor Mill, the co-chairman of the committee was not feeling completely hopeful for the completion of the aluminum mill project.

He said, “I believe one of the worst financial votes I have ever taken was this one. I feel like two administrations now and multiple General Assemblies have been played for fools and written down the road.”

He also said that the committee wants to see the aluminum mill operation in Ashland, but at the same time does not want the state to finance the project.

McDaniel further asked Nate Haney, that US$165 million has been collected by Unity, then why they are not repaying their US$15 million loan to the state. In answer to this, Nate Haney deflected saying that he cannot reveal the company’s financial information.

‘Investors have made very clear that they also want to have Kentucky’s support,” added Nate Honey.

“I will be filing a bill this year that demands your repayment of these incentives and I hope I can enjoy the support of those members on the committee,” said McDaniel.

Senator Michael Nemes, R-Shepherdsville, told the executives of the company to share more information since Kentucky is now a part of Unity Aluminum after the taxpayer fund they  “regret giving,” to the company.

Jason Petrie, R-Elkton and co-chairman had also voted for the aluminum mil’s funding and said that it is a “vote that still hangs around in the back of my mind.”

“My bandwidth, my landing strip, my capacity for let’s hopes and pray further has come to an almost complete stop,” said Jason Petrie.

As per Nate Haney, Unity Aluminum will be able to reach their fundraising goal by the deadline and also complete the construction of the aluminum mill by 2025.