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Aluminum January 13, 2022 09:20:03 PM

Senate Bill Proposes Recovery of $15 Million from Former Braidy Aluminum

Paul Ploumis
ScrapMonster Author
The state funds were awarded to Braidy Industries in 2017, after Gov. Matt Bevin convinced lawmakers to go ahead with the grant with little detail.

Senate Bill Proposes Recovery of $15 Million from Former Braidy Aluminum

SEATTLE (Scrap Monster): Kentucky plans to recover the taxpayer money granted to an aluminum plant project that has even failed to break grounds even after five years.

The Senate Bill 48, filed by Republican Senator Chris McDaniel seeks to recover the money, along with interest and other fees before end-2022 or proceed with a lawsuit. This has put the formerly Braidy Industries to act quickly on its earlier promise to build an aluminum rolling mill in Eastern Kentucky region.

Although the bill got approval by the Senate Appropriations and Revenue Committee on Wednesday, the lawmakers hope that the bill wouldn’t be necessary and that the company will ultimately be successful in coming up with the project. Sen. Chris McDaniel said that he doesn’t want the commonwealth to get $15 million, instead Ashland to get the aluminum mill. The bill is aimed at applying additional levels of pressure, he added.

The state funds were awarded to Braidy Industries in 2017, after Gov. Matt Bevin convinced lawmakers to go ahead with the grant with little detail. The company was awarded $4 million from the Abandoned Mine Lands Fund. In addition, a Russian company had promised to invest $200 million. However, the project never came up.

As per the legislation, the company has time until 31st March, 2022 to line up its investments, so as to build the plant.

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