Owl’s Head Alloys Inc., a secondary aluminum producer based in Bowling Green, Kentucky, has announced plans to add a fourth furnace to its production facility there. The $3 million investment for a new scrap-melting furnace is needed to keep up with growing demand from its customers, according to the company.
The new furnace, projected to come online in May 2018, will increase Owl’s Head’s capacity by 42,500 tons of scrap per year. Presently, the company melts about 120,000 tons of aluminum scrap per year.
Owl’s Head processes a range of aluminum scrap, including used beverage containers (UBCs), automotive wheels, painted siding and highway signs. The company sorts and shreds the recycled aluminum products, melts the processed aluminum to customer specifications and casts it into ingots or sows or provides it in molten form. The company then ships to end consumers in the automotive, beverage can and construction industries. Company President David Bradford comments, "All end markets are pretty strong right now, although the automotive market is an area of great opportunity.”
“Owl’s Head Alloys has created a significant presence and reputation nationally in the secondary aluminum recycling industry simply by doing business as we should – delivering exceptional quality, serving our customers’ interests over our own and maintaining integrity,” says Kevin Mays, CFO of Owl’s Head. “This expansion allows us to continue meeting our customers’ growing needs as well as provide additional economic development in our community.”
To assist in the project, the Kentucky Economic Development Finance Authority (KEDFA) has preliminarily approved the company for tax incentives of up to $150,000 through its 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.
In addition, Owl’s Head is eligible to 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.
“Owl’s Head Alloys is a tremendous success story, and their expansion plan is wonderful news for both Bowling Green and the surrounding communities. It is exciting to see companies like Owl’s Head prosper in Kentucky,” states Kentucky Gov. Matt Bevins.
“Their aluminum recycling operation is another indicator of the high demand for aluminum and the health of our primary metals sector overall,” the governor adds.