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Governor Steve Beshear's Communications Office
Governor Beshear, Gerdau Ameristeel Announce $25 Million Investment in Calvert City Steel Mill
Project aided by state incentive program aimed at job retention, reinvestment in Kentucky facilities
CALVERT CITY, Ky.– Gov. Steve Beshear and officials from Gerdau, through its subsidiary Gerdau Ameristeel, today joined community leaders in Calvert City to announce the company will make a $25 million investment in its steel mill, marking its largest capital investment in five years. The funds will be used to install a new re-heat furnace at the plant, with construction slated for completion by the end of 2012. The project also allows the company to retain its 139 existing employees.
“Kentucky is sending a clear message to its existing industries that we want to be a true partner in their success and Gerdau Ameristeel’s $25 million investment in its Calvert City steel mill is a great example of this kind of partnership,” said Gov. Beshear. “With the passage of my Incentives for a New Kentucky legislation last summer, the Commonwealth became one of the first states to pioneer a program that focuses on job retention for our existing industries, recognizing that the jobs we save are as important as the jobs we create. I congratulate Gerdau Ameristeel on this significant investment and will continue to support their efforts to grow and prosper in the Commonwealth.”
Gerdau Ameristeel has operated the steel mill since the company acquired it in 2004. The company’s expenditure marks the third Marshall County reinvestment project to be announced that received assistance through a state incentive program expanded in the Governor’s Incentives for a New Kentucky bill last summer. The Kentucky Reinvestment Act (KRA) was designed to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive. Gerdau Ameristeel received preliminarily approval through KRA for up to $6 million.
“As a proud Kentucky corporate citizen, Gerdau Ameristeel appreciates the support provided by state and city officials in this important investment project, with particular thanks to the efforts of Gov. Beshear,” says Terry Donovan, works manager at Gerdau Ameristeel in Calvert City. “Our Calvert City employees also played an important part in the company’s decision to bring this investment to Calvert City, in recognition of their high level of engagement and productivity.”
The new reheat furnace will provide a 20 to 30 percent increase in productivity and a 20 percent reduction in gas consumption, which will result in both cost and environmental benefits.
“Gerdau Ameristeel’s announcement to invest in a more cost efficient re-heat furnace system is great news in two ways,” says Calvert City Mayor Lynn Jones. “First, the investment helps solidify 139 jobs and make Gerdau Ameristeel more competitive in the market. Secondly, the new furnace is so much more environmentally friendly, adding to Calvert City’s ‘Let’s Go Green’ initiative, and to Gerdau Ameristeel’s commitment to environmental stewardship.”
“Projects like these are important in remaining competitive and in providing quality jobs for our workforce,” said Calvert City Judge Executive Mike Miller. “Our community stands behind their success and we wish them the best.”
A detailed community profile for Calvert City (Marshall County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=097. Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.
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