Audubon Metals to add aluminum capacity

Audubon Metals to add aluminum capacity

Secondary aluminum firm will add smelting and ingot-making capacity in Henderson, Kentucky.

July 31, 2017
Recycling Today Staff
Auto Shredding Financial Nonferrous

Henderson, Kentucky-based aluminum producer Audubon Metals LLC will expand its plant in that city with an $8.3 million investment that will create 39 full-time jobs. The announcement was made in late July by the office of Kentucky Gov. Matt Bevin.


Audubon will build a nearly 21,000-square-foot addition at its facility, enlarging it to more than 333,000 square feet to house a fifth reverberatory furnace for aluminum smelting. As well, the project includes an extension of its ingot casting line, expansion of its production storage building and a new warehouse.


“Since our Henderson aluminum smelting operation began in 1996, Audubon Metals LLC has steadily grown its market share in providing quality products to the secondary aluminum die-casting industry,” says Audubon Metals President and CEO Jim Butkus. “This project will expand and diversify our product mix and give us the required capacity to grow and enter new markets. Coupled with the contributions from our terrific associate employees and support from the Henderson community, we are confident we will continue to maintain our highest level of service to our customers and to our community.”


Using shredded automotive metal, Audubon separates, dries, melts and blends aluminum alloys to meet the specifications of individual customers. Die-casting companies throughout the Midwest use Audubon’s ingots to produce automotive parts, lighting and metering equipment, appliances and small engine components.


“Audubon Metals has been a steadfast employer and community partner in Henderson County for more than 20 years,” says Bevin. “We are pleased to announce this latest investment and new jobs by a company whose products are central to so many of Kentucky’s manufacturing operations – from automotive parts and vehicle assembly to the appliance industry and more.”


Audubon, a subsidiary of Evansville, Indiana-based Koch Enterprises Inc., opened the Henderson facility with 55 employees and a monthly capacity of 3,500 tons. It now employs 270 and can produce more than 15,000 tons monthly.


Kentucky’s aluminum industry has seen significant growth, particularly as automakers, seeking higher fuel efficiency, turn to lightweight aluminum components including body panels, mechanical components and housings. Since 2015, Kentucky has announced more than $2 billion in aluminum-related corporate investment and about 2,100 new, full-time jobs, according to Bevin’s office.


To encourage the expansion, the Kentucky Economic Development Finance Authority (KEDFA) in July 2017 preliminarily approved the company for tax incentives of up to $1.01 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.


Additionally, KEDFA approved Audubon for up to $90,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.


Audubon also can receive personnel recruitment and training resources from the Kentucky Skills Network.