Friday, December 23, 2011

Alreco, Without The EPA

Last week brought news of a few more jobs for the Kentucky labor force and maybe got a step or two on the EPA regulations concerning toxic waste materials.

On December 13 the State of Kentucky announced that an Australian company, MHM Metals, would be opening a new plant in Western Kentucky. Normally that wouldn't mean much to me, except that this company processes aluminum waste by-products, and we have some aluminum plants in Ky. MHM has a proprietary process to remove all the toxic waste from the leftovers of recycling aluminum cans.

The top three reasons for location in Ky were listed as:
  • 115-acre industrial landholding in Russellville, Kentucky
  • Existing buildings on site and property zoning to benefit time frame
  • 350,000 tons per annum of salt slag and black dross (the waste product) within an economic radius and rail availability with a high-quality rail operator may further extend this economic distance
Most of us know that R. J. Corman, a high-quality rail operator, runs a train every other day from Berea to Russellville, hauling aluminum ingots from the recycler to the can factory. Anywhere from 20 to 30 cars in a train. What I did not know is that there are two other aluminum producers in Paris (Central Motor Wheel of America) and (Kentucky Smelting Technology, Inc ), both of which have to melt their materials to cast them. There is a third smelting plant in Shelbyville (Ohio Valley Aluminum) which is conveniently right on the rail line and about halfway along the line. Corman's Memphis line division is similarly situated among several aluminum smelters too.

With so many current aluminum plants around and a history of either landfilling or stockpiling this excess material, there should be much work for the new Alreco facility and the three railroads of the region.

All of this without a peep from the EPA or any mention of their “job killing” regulations.

PS, I have not heard Mr McConnell's name spoken in context with this either.

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