Steelmaker moves ahead on effort to build plant in Southeast

A steel producer has announced plans to build and operate an aluminum mill in the southeastern U.S., after reaching a deal with the company that so far has failed to deliver on its promise to put the plant in Kentucky — even with financial backing from the state.

The announcement this week was the latest chapter in what has been a long, tortuous effort to build a new aluminum plant in an Appalachian region struggling to create jobs.

Steel Dynamics Inc. said this week that its board approved plans to move ahead with construction of the $1.9 billion plant, though it did not specify where other than to say it will be somewhere in the Southeast. Steel Dynamics said it will own more than 94% of the facility through a joint venture arrangement with Unity Aluminum. The Steel Dynamics plan is much larger in size and scope than what Unity had contemplated. And a Unity spokesperson offered assurances that the state of Kentucky will recoup its investment.

Unity, formerly known as Braidy Industries, had intended to build an aluminum mill near Ashland in northeastern Kentucky but struggled for years to line up sufficient financing for the project.

The Ashland-area site — about 240 acres (97 hectares) — is “insufficient to meet the size and scope requirements” of the new project, a Unity spokesperson told The Associated Press on Wednesday. Steel Dynamics did not respond to emails and calls seeking comment on where its new mill would be located.

Kentucky Gov. Andy Beshear's administration signaled it will make a pitch to try to retain the project. The state's economic development cabinet has not been approached by Steel Dynamics, but a cabinet spokesman said Wednesday that “we are actively reaching out to discuss possibilities.” Unity's plan to build in Kentucky was a pet project...