New $1.7B Kentucky Aluminum Mill Financing Hits a Snag

SEATTLE (Scrap Monster): Braidy Industries announced that it is still short of $300 million in private investment needed for financing the new $1.7 billion aluminum rolling facility to be constructed in Ashland, Eastern Kentucky. This was disclosed in a regulatory filing by the company on Monday.

In the filing, the company noted that it has received indications of interest from potential investors in excess of $300 million, but the investors are not committed to make any investment currently.

Furthermore, the new filing stated that 50% of the $200 million investment announced by the Russian aluminum giant, Rusal, in April this year will be contingent on Braidy Industries raising the remaining $300 million from other investors so as to secure the financing. It must be noted that Rusal had signed an agreement for a joint venture project in which it will have 40% interest in the joint venture entity.

ALSO READ: Braidy Industries Aluminum Rolling Mill to have Economic Impact of $2.8 Billion

As per the new filing, the company is seeking alternate ways of financing the project, rather than depending upon cheap, government-backed loans. The Kentucky administration had invested $15 million from state money into the project in 2017. The new disclosure does not have mention to proposals in earlier disclosures including support from the U.S. Department of Energy’s Advanced Technologies Vehicle Manufacturing Program and export credit support from the German government.

The proposed plant is considered as the largest aluminum plant built in the country in nearly four decades.