New aluminium smelter to open in New Madrid

A new aluminium smelter will open in New Madrid County, Missouri, at the site of the former Noranda Aluminium plant, state and federal officials said Tuesday.

State Rep. Don Rone, R-Portageville, and U.S. Rep. Jason Smith welcomed the jobs the new Magnitude 7 Metals plant will create.

Gov. Eric Greitens, Rone and Smith are among officials scheduled to attend the formal announcement at 2 p.m. Friday at the former smelter at St. Jude Industrial Park in New Madrid County.

Magnitude 7 Metals is hiring workers for the new plant, which could generate close to 400 jobs for the area, Rone said in an online news release.

The Swiss-based company purchased the smelter in bankruptcy. It was the only potential buyer that didn’t want to scrap the plant, Rone said last year.

“The project has been two long years in the making,” Rone said. “So many people have dedicated their time and efforts to make this happen, and I could not be happier for the people of the Bootheel.”

Rone said, “New industry is coming to our area because our people are hard workers and driven to do their best.”

Noranda shuttered its sprawling Bootheel plant in March 2016 after the company filed for bankruptcy. The closing eliminated 900 jobs.

Smith, a Republican from Salem, Missouri, said, “We have some of the poorest counties in the state of Missouri, and a way for people to get out of poverty is to get a quality, good-paying job. These are good-paying jobs,” he said of the new smelter.

“We have a very strong, hard-working workforce. We want to get people back to work. It is great news for Southeast Missouri,” Smith said of the new plant.

Smith said he doesn’t know when the plant will be up and running.

“I do know they have everything in place to get rolling,” he said.

The effort to land a new smelter in Southeast Missouri included passage of a measure by state lawmakers last year to allow large utility customers to negotiate lower electric rates.

But that new law wasn’t a factor in this case, Smith said.

Magnitude 7 Metals has negotiated a deal with Associated Electric Cooperative, which does not require any regulatory approval by the Missouri Public Service Commission, Smith said.

David Tudor, who heads Associated Electric, will be among the dignitaries in attendance at Friday’s announcement, according to Rone.

The 8th District congressman said the economic policies of President Donald Trump helped convince Magnitude 7 Metals to open a new smelter in Southeast Missouri.

Those policies included regulatory relief and tax cuts.

The announcement of a new smelter in Southeast Missouri comes after Trump recently announced he would impose tariffs on imported aluminium and steel.

“It is just the cherry on top of the cake,” Smith said of the tariffs. “We have been speaking with this company for some time.”

China has illegally dumped its subsidized aluminium, putting United States plants out of business, he said.

In 2000, China had 10 percent of aluminium smelting. As of 2016, they had 55 percent of the business, Smith said.

The Trump-authorized investigation by the U.S. Department of Commerce found China was dumping aluminium on the world market, the congressman said.

“That is why the United States is down to only two full-operating smelters,” Smith said.

“If aluminium can compete, and be on fair playing field with the rest of world, they (Magnitude 7 Metals) will be able to produce more aluminium,” he said.

Smith dismissed concerns of some Republican lawmakers and others the tariffs could spark a damaging trade war. Smith said the United States is already in a trade war with other nations when it comes to exports and imports.

“We have created an environment now that is where folks want to invest,” Smith said of Southeast Missouri. “This is going to be big.”

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