FRANKFORT, Ky. (March 18, 2021) - Matalco Kentucky LLC, a newly formed venture of Matalco (U.S.) Inc., a producer of aluminum products for the extrusion and forging manufacturing industries, plans to locate in Simpson County with a $53.5 million investment that will create 60 full-time jobs in the coming years.
"I would like to welcome Matalco to Kentucky as the latest addition to our thriving aluminum sector and thank the company for its commitment to create 60 quality jobs for Kentuckians," Gov. Andy Beshear said. "Aluminum-related and other primary metals businesses are growing rapidly in our state and helping us build Kentucky's economy back stronger than ever. Matalco will be a great fit in Kentucky as the company looks to expand its presence in the U.S. market. Congratulations to Matalco, Simpson County and the families in the surrounding area who will benefit from this great project."
Matalco will occupy space in the recently acquired 461,000-square-foot facility on 107 acres on 300 Brown Road in Franklin. The property, which was purchased by an affiliated company, formerly served as the home to a Quad/Graphics printing operation. The brownfield remelt rolling ingot facility will produce alloyed ingots from recycled aluminum for customers throughout the Midwest. The facility is expected to be operational by mid-2022, with annual capacity to produce 270 million pounds of aluminum ingots.
"We are extremely excited about entering this next phase of our corporate strategic growth plan. This investment demonstrates our continued commitment to serve our customers, expand our market share and is in direct response to the growth and demand that we are experiencing with our products and services," said Robert Roscetti, vice president, corporate development at Matalco Inc. "Overall, we are delighted to be part of this progressive community as this will bring new jobs and opportunities to the region."
Matalco (U.S.) operates as part of Matalco Inc., a Brampton, Ontario-based company founded in 2005 that produces over 1 billion pounds of aluminum billets and slab ingots annually. The company currently provides products for customers throughout Canada and the Midwest and Northeastern regions of the U.S., as well as serving as a recycler for aluminum scrap conversion. Matalco also operates in Indiana and Wisconsin, and has two locations in Ohio.
Matalco joins a primary metals industry in Kentucky that includes 234 facilities employing nearly 26,000 people statewide. Since 2019, the commonwealth has seen 21 announcements of aluminum-related projects, expected to drive over $625 million in new investment and create more than 620 full-time jobs.
Kentucky is currently home to 37 facilities with Canadian ownership. Since the start of 2020, Canada-based companies have announced projects expected to create nearly 300 full-time jobs with over $140 million in new investment.
Simpson County Judge/Executive Mason Barnes noted the team effort to make the project possible.
"I want to thank Matalco for locating their newest manufacturing facility in Simpson County. This is a multimillion-dollar investment by Matalco and one that will be very beneficial to our city," Judge/Executive Barnes said. "My thanks to the Franklin-Simpson Industrial Authority, TVA and the Kentucky Cabinet for Economic Development for helping to recruit this excellent company to Kentucky and to our region of the state."
Franklin Mayor Larry Dixon welcomed the company's first operation in the state.
"We are very excited about Matalco locating in Franklin, Kentucky," Mayor Dixon said. "This great Canadian company will bring new life to a building that has been vacant for two years. Matalco will be providing some great job opportunities for our city. We really look forward to working with them as they become an important part of our community."
John Bradley, senior vice president of economic development at the Tennessee Valley Authority, said the project helps set the foundation for future growth.
"TVA and Franklin Electric Plant Board congratulate Matalco on its decision to establish operations in Franklin. Helping to foster new job opportunities and investment in the communities we serve is fundamental to TVA's mission of service," Bradley said. "We are proud to partner with the Kentucky Cabinet for Economic Development and the Franklin-Simpson Industrial Authority to help further that mission and support companies like Matalco's future business success."
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company's investment of $53.5 million and annual targets of:
- Creation and maintenance of 60 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $25 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Matalco can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
For more information on Matalco, visit Matalco.com.
A detailed community profile for Simpson County can be viewed here.
Information on Kentucky's economic development efforts and programs is available at www.CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.ky.gov and the Governor's official social media accounts Facebook, Twitter and YouTube.