May 22, 2018
Company will get $15 million direct investment of public money and up to $15 million in tax breaks
BRAIDY officials say project will create up to 1,800 construction jobs and 600 permanent jobs at the future mill
Braidy Industries plans to break ground on its $1.5 billion aluminum rolling mill near Ashland next month, moving one step closer to launching an operation that is expected to create hundreds of jobs in Eastern Kentucky.
In a Facebook post Saturday, CEO Craig Bouchard announced a groundbreaking ceremony at 1 p.m. on June 1 at the EastPark industrial center. A celebration is planned that evening in downtown Ashland, he said.
Bouchard said he has invited Gov. Matt Bevin to cut the ribbon that day. The governor helped secure an unusual government incentive package for Braidy Industries that included a $15 million direct investment of public money in the company and up to $15 million in tax breaks commonly used to encourage job creation.
Ashland Community and Technical College also has been developing a two-year degree program in partnership with Braidy, which president and CEO Kay Adkins said could cost $750,000 to $1 million to implement. The state has provided a $1 million grant to help the college with that initiative, which aims to train future Braidy employees.
Other examples of local support for Braidy include the city of Ashland’s plan to budget about $600,000 for work on a pump station that will supply water to the company’s operation, according to The Daily Independent.
The state invested in Braidy through a government-owned limited liability company called Commonwealth Seed Capital. The arrangement with Braidy gives Commonwealth Seed the right to demand repayment of the $15 million if construction isn’t underway by June 30.
Bouchard, a metal-industry entrepreneur based in Naples, Florida, emphasized that completing the mill will take time.
“I would like to take this opportunity to encourage a sense of patience as well as excitement about our collective future. The mill will not magically appear over night,” he wrote. “It will take a couple of years to build 45 acres under roof with a half billion dollars of brand new equipment inside.”
The company on Monday declined comment about its groundbreaking event. A privately held company, Braidy has revealed limited information about its investors, its construction plans or its finances. Bouchard has said his willingness to provide information to Courier Journal depends on the news organization’s support for his venture and for Bevin.
Courier Journal is involved in ongoing litigation over an open records request for documents from the state government that identify Braidy shareholders.
Jaunique Sealey, executive vice president of business development, said in March that Braidy has three construction contractors but would not identify them.
Braidy paid nearly $1 million for 204 acres and a vacant, 110,000-square-foot building at EastPark, where it is expected to begin producing high-quality aluminum sheet and plate in 2020. The company has said the project will create up to 1,800 construction jobs and approximately 600 permanent positions at the future mill.
So far, Braidy has spent $14 million on engineering and preparation for construction, Bouchard said on Facebook. A few months will be spent moving, compressing and preparing a reclaimed coal strip-mining site to support big machines, the largest of which weighs more than 200 tons, he said.
“Braidy will drill foundations to the bedrock. Then we will start to build the finest aluminum mill in the world,” Bouchard said.
By Morgan Watkins
Louisville Courier Journal
