Commonwealth approved for $1.5 million for expansion project
Commonwealth Rolled Products has been approved for $1.5 million in state support from the Kentucky Economic Development Finance Authority for a proposed $167.25-million expansion project at the Lewisport facility.
Commonwealth’s application to the Authority said the company will spend $1.25 million on improvements to facilities and $166 million on new equipment. The project is expected to create 40 jobs, paying an average of $38-per-hour.
The funding was awarded by KEDFA under the Kentucky Business Investment program, and will be a 15-year incentive agreement. The performance-based agreement will provide tax incentives up to $1.5 million if the company meets annual targets of maintaining the 40 positions and average pay rate.
“This is an exciting time for the company, our customers, employees and the local community,” said CEO Mike Keown. “The investment will allow us to complete the over $750-million investment program we started in 2015 to make the Lewisport facility the most modern and cost competitive automotive and common alloy sheet plant in the United States. I thank our owners, American Industrial Partners, the state of Kentucky, and Hancock County for their support.”
Mike Baker, director of the Hancock County Industrial Foundation, expressed his gratitude for the investment Commonwealth is making locally.
“The project and commitment on behalf of Commonwealth Rolled Products is extremely exciting to us,” said Baker. “Any time a company makes a significant investment locally, it’s very good news for our economy. These companies can put their money where ever they wish, but to have them invest in their future in Hancock County is encouraging.”
Baker served as general manager at Commonwealth until 2008. He said when American Industrial Partners took over the plant over a year ago, the company said at that time they were making a commitment for the long-term.
“This is an extension of those things said when the plant changed hands,” Baker said. “This project will enhance the sustainability of the facility for a long time to come. Most of our manufacturing facilities have been here for decades, and they are aging, but to have Commonwealth commit to an effort to update and enhance says something about how they feel things are going for the company in Hancock County.”
Commonwealth employs more than 1,000 people at its 53-acre facility in Lewisport. In 2017, a $600-million expansion and modernization project was completed at the site.
“We are thankful for this impactful announcement,” said Judge-Executive Johnny “Chic” Roberts, Jr. “Commonwealth Rolled Products has been a vital part of our community for many years. The scope of this project validates the company’s confidence in the local workforce and helps to ensure a stronger future for Hancock County.”
The Lewisport facility produces aluminum body sheet for the automobile industry, as well as for applications in the industrial market. Customers include Tesla, Toyota, and General Motors, among several others.
The jobs to be created will include positions in production, technical and leadership roles. Work is expected to begin in early 2022 and be completed by early 2024.
“Once this expansion is complete, the company will employ more than 900 Kentucky residents, and I am confident that growth will continue well into the future,” said Governor Andy Beshear.
Metals Industry Growing in State
Commonwealth’s investment builds on the state’s existing 230-plus metals operations across Kentucky, employing about 25,000 Kentuckians. In the past year, the industry has announced $1.1 billion in planned investment and more than 1,700 planned new jobs in the state, according to the Governor’s Office.
The state says in 2021 “every economic development record in the books” have been shattered, with private sector location and expansion projects topping $11 billion with a planned 17,000 new jobs. Through September, the average hourly wage in incentivized projects is $24.15 before benefits, a 10-percent increase over 2020.
“Site Selection” magazine ranked Kentucky at the top of the South Central United States region in 2020 – and third nationally – for qualifying economic development projects per capita. The state was also seventh in the nation in total projects, and first among states with a population under 5 million. Kentucky was also ranked in the top five nationally for positive business climate.
By C. Josh Givens
