North American Stainless Looks to Grow KY Facility

North American Stainless plans to add a new electric arc furnace at its Ghent, Ky., facility.

The project represents a $50 million investment. The project is expected to be complete by October 2006.

The company is taking advantage of a statewide program offering recycling tax credits to modernize operations in Kentucky. The program was created this year by the Kentucky General Assembly. According to reports the tax credit being offered could reach as much as $25 million over 10 years. The credit is geared to major recycling projects that involve an investment of more than $10 million, and the facility itself must have a value of more than $500 million.

"One of the goals of my JOBS For Kentucky tax modernization plan is to make the commonwealth a more attractive place to do business," said Kentucky Governor Ernie Fletcher. "I want to thank North American Stainless for this investment and the confidence they continue to place in the commonwealth."

By using its existing furnace on a standby basis and replacing it with a newer, more modern furnace for primary production, North American Stainless will improve its scrap metal recycling capabilities and increase overall melting efficiencies, the release said.

North American Stainless is owned by Acerinox SA of Madrid, Spain.