Matalco Inc., a division of the Giampaolo Group of Companies, is making progress in its plans to expand its existing aluminum casting capacity by approximately 75%. First announced in 2018, the plan includes the construction of several greenfield aluminum remelt facilities for production of billet and rolling slab.
New Production Capacity in Wisconsin
Since its initial announcement, Matalco has started up operation of its greenfield plant in Wisconsin Rapids, Wisconsin in November 2020 — making it the company’s sixth production facility. Though the grand opening ceremony was delayed due to the COVID-19 pandemic, the company was able to adapt in order to bring the plant online in a timely manner.
“The Wisconsin plant and its production capacity provide a great fit for the growing upper-Midwest extrusion industry,” said Doug Rhinehart, Matalco’s vice president of Sales and Marketing. “This facility provides the needed flexibility and a welcome puzzle piece to Matalco’s growth strategy.”
The $80 million facility housed in a 110,000 sq ft manufacturing plant is equipped with advanced technology. This includes new furnaces from Gillespie & Powers, including one 115,000 lb tilting melting furnace, one 115,000 lb tilting holding furnace, three 120,000 lb batch homogenizing ovens, and two 120,000 lb. batch coolers with charging car, and related equipment. The completed facility has the capacity to produce 240 million lbs per year of 7-16 inch aluminum billet, as well as rolling slab.
“Matalco’s new Wisconsin Rapids facility represents the second Greenfield project that I have been fortunate enough to lead for Matalco,” said Robert Roscetti, vice president of Corporate Development, Matalco. “Any project of this size and complexity offers its fair share of challenges (including the COVID-19 pandemic), however through an unwavering commitment from our project team at Matalco along with our engineering and construction management firm, Ramboll, and cooperation from our equipment suppliers, we were able to complete the commissioning and startup of operations and come in under budget. Overall, it’s an exciting new chapter in Matalco’s story and one that continues to maintain our focus on servicing our customers with superior products for years to come.”
Forthcoming Plant in Kentucky
Matalco is now investing $53.5 million in the construction of another remelt facility in Frankfurt, Kentucky. Operating under the name Matalco Kentucky LLC, the plant will be housed within a 461,000 sq ft facility, where it will produce 270 million lbs of aluminum alloy billet and slab per year from recycled aluminum for customers throughout the Midwest.
“We are extremely excited about entering this next phase of our corporate strategic growth plan. This investment demonstrates our continued commitment to serve our customers, expand our market share and is in direct response to the growth and demand that we are experiencing with our products and services,” said Roscetti. “Overall, we are delighted to be part of this progressive community as this will bring new jobs and opportunities to the region.”
The new plant is expected to create 60 full-time jobs in the coming years. To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $53.5 million and meeting annual job creation targets.
In addition, Matalco can receive resources from the Kentucky Skills Network, which provides no-cost recruitment and job placement services, reduced-cost customized training, and job training incentives.
“I would like to welcome Matalco to Kentucky as the latest addition to our thriving aluminum sector and thank the company for its commitment to create 60 quality jobs for Kentuckians,” said Gov. Andy Beshear. “Aluminum-related and other primary metals businesses are growing rapidly in our state and helping us build Kentucky’s economy back stronger than ever. Matalco will be a great fit in Kentucky as the company looks to expand its presence in the U.S. market. Congratulations to Matalco, Simpson County, and the families in the surrounding area who will benefit from this great project.”
The Kentucky remelt plant is expected to be operational by mid-2022.