A paper company has announced plans to invest $20 million in its facility in Hancock County and retain 452 jobs. Domtar Paper Company LLC says it will upgrade and add equipment to its Hawesville operation.
Domtar operates 13 mills throughout the world, including its pulp and paper facility in northwestern Kentucky. The Hancock County plant makes an estimated 80,000 tons of market hardwood pulp—used for paper production—and about 600,000 tons of printing grade paper each year.
One of the changes at the plant will be a new conveyor system, which Domtar says will lower operating costs and reduce greenhouse gas emissions from the facility.
Another western Kentucky aluminum smelter has given notice that it intends to shut down in a year because of increasing electric rates.
Media reported the Rio Tinto Alcan aluminum smelter in the Webster County town of Sebree gave notice Friday of its intention to follow the lead of Century Aluminum in Hawesville. Century filed its notice in August.
The notice from Rio Tinto Alcan comes as Big Rivers Electric Corp. seeks a substantial rate increase citing the impending loss of Century, its biggest customer.
Rio Tinto Alcan spokesman Kenny Barkley said Big Rivers is seeking a rate increase from $50 per megawatt now to $60 per megawatt, and that rate isn't sustainable. The smelter has 488 employees.
Hancock County leaders are trying to stay optimistic about the future of a major employer in their area. Century Aluminum smelter announced this week it has given Big Rivers Electric Cooperative a 12-month termination notice. That puts the smelter’s ability to operate in jeopardy.
An aluminum company operating a western Kentucky smelter has given notice to terminate its power contract with Big Rivers Electric Corp. The move signals that the nearly 700-employee smelter at Hawesville is in jeopardy.