Century Aluminum to add 45 jobs at Sebree smelter

HENDERSON, Ky. - Century Aluminum Co. on Thursday announced a $3 million expansion at its 530-employee Sebree smelter that will create 45 more jobs and help cement its presence in this region.

Century said the expansion is intended to "significantly increase" the percentage of the smelter's primary aluminum that is produced as premium billet and rolling slabs to meet growing demand in the automotive body, aerospace and construction industries. Century calls the move its "Premium Products Initiative."

"This announcement bolsters the future of this plant and hopefully reinforces that Century Aluminum is proud to be in the region and committed to stay and grow," Jason Young, the general manager of Century Aluminum Sebree, said in a statement.

"This expansion will create dozens of new, quality jobs, and is just one of a series of plans we have to improve the business," Young said. "This expansion will boost what is already a significant aluminum industry presence in Western Kentucky, and with the dramatic increase in aluminum consumption worldwide, we believe that this region is set to see exciting economic growth."

The announcement came one day after Century announced a $49.7 million improvement in net quarterly profits and 10 days after the company ratified a new five-year collective bargaining agreement with the Steelworkers union, which represents approximately 400 hourly workers at the Sebree plant.

"The expansion is good for the long-term sustainability of the plant," Charlie Hiatt, president of United Steelworkers Local 9443-00, said in a statement. "We are looking forward to working with Century Aluminum to keep smelting operations in the United States. Safety and training will remain a top priority as the Steelworkers and Century move forward."

Century thanked Kyndle — the organization formed late last year by the merger of the Henderson Chamber of Commerce and the Northwest Kentucky Forward regional economic development organization — for its help.

"Century has played an active leadership role in Kyndle, and its support has been instrumental in helping make this project a reality," Young said.

In announcing the expansion at its State of the City Luncheon, Kyndle President Brad Schneider said wages at the plant average just over $23 per hour. The new jobs will add $2.2 million to an annual payroll that already totals $31 million at the smelter, he said.

"Even more importantly for the long-term viability of our region's economy, Century Aluminum's investment indicates its commitment to the Sebree smelter, both now and for the foreseeable future," Schneider said.

That's significant "considering that back in 2012" — after former plant owner Rio Tinto Alcan announced that Sebree was a "noncore asset" that was no longer part of the company's strategic plan and had been put up for sale — "many of us wondered if the smelter would remain open at all," Schneider said.

"This is tremendous news and a reassuring message by Century that they will continue to make aluminum here," he said. "The importance of that is hard to overstate. Century Aluminum's overall economic impact reaches into the hundreds of millions of dollars, both directly and indirectly," and that the company's two smelters in Western Kentucky, at Sebree and Hawesville, support an additional 3,500 jobs in the region.

The expansion and new jobs alone will have an estimated economic impact of $109 million over the next five years, according to Schneider.

Century is receiving both state and local incentives. The Kentucky Economic Development Financing Authority on Thursday approved up to $750,000 in wage assessments and income tax credits. Meanwhile, $22,500 from the former Henderson County Industrial Foundation is being provided through a partnership of Henderson County Fiscal Court and Kyndle.

This fall, Century said it plans to launch a new community education campaign, working with local officials, schools, colleges and other industries to promote job-training programs in the aluminum industry as part of a private-public partnership to provide a well-educated and highly paid workforce.

In announcing the expansion, Century noted that over the course of 40 years and five parent companies, the Sebree smelter has been a premier corporate leader.

Its "demanding job training and workforce quality" helped Henderson County qualify as one of the state's first Work-Ready Communities. The smelter was a founding member of the Northwest Kentucky Training Consortium, which provides cost-effective training, educational and development opportunities.

It has been a leading industrial supporter of Henderson-area economic development efforts, and Century is active with the Green River Area Development District and GRADD's Workforce Investment Board, which are engaged in job creation and economic development.

Century and its employees also are deeply involved in dozens of local charitable causes, and the company has developed a strong partnership with the area's local public schools and with Henderson Community College, where it has created an annual scholarship through the college. The plant additionally provides extended educational offerings and leadership training courses through HCC.

"Century and the Sebree plant have played a vibrant civic role in our community," Henderson County Judge-executive Hugh McCormick said in a statement. "I'm confident that an expansion of their facility would assist in their continuing efforts to create good jobs and boost our local economy."

"This is a tremendous day for our entire region," state Rep. Jim Gooch (D-Providence) echoed.

In reporting his company's improved earnings on Wednesday, Century CEO Michael Bless hailed the company's decision to pull its aluminum smelters at Hawesville and Sebree off the Big Rivers Electric Corp. system and negotiating a deal allowing the plants to use power purchased on the open wholesale market at lower prices.

He also reported that the outlook for the aluminum industry was brightening with the developed world's economies starting to grow and that the markets served by Century's smelters look "robust."

"We see these industry conditions continuing for a reasonable period of time, and in this context are preparing prudent investments to exploit what we deem to be attractive opportunities for the company," Bless said.

Century purchased the 40-year-old Sebree smelter from Rio Tinto Alcan in June 2013.

By last November, Plant Manager Jason Young told a Kentucky legislative panel that the smelter had added nearly 50 new jobs at the plant to address safety issues associated with excessive overtime work after Rio Tinto Alcan allowed the workforce to dwindle to 470 people.

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