Noranda Aluminum Holding has announced it will move forward on $56 million worth of investments in the United States and Jamaica.
Executives at Franklin-based Noranda say they will spend $45 million starting next year on a U.S. rod mill that will make products used in the manufacturing of electrical wire and various types of cable. The mill should be fully on line in 2015. Its site has not yet been finalized, but officials said early this year they wanted to add to their large Missouri plant.
In Jamaica's Discovery Bay, Noranda will dredge some shipping channels starting near the end of this year and wrapping up in late 2013. That project will build on $6 million worth of infrastructure improvements it made in early 2011.
“The new rod mill and the port expansion project are attractive to us because they provide avenues for revenue growth and increased productivity and because their value-creation is largely independent from LME aluminum prices,” said President and CEO Kip Smith. "Redraw rod has been one of our strongest primary aluminum products in recent periods, and we expect continued growth in this product.”
On the flip side of the Jamaica plans, Smith also said his team has decided to hold off on expanding its facility in Huntingdon, Tenn., near Jackson. Plans had called for new recycling and re-melt facilities there.
Shares of Noranda (Ticker: NOR) are down almost 3 percent in mid-morning trading Tuesday. Year to date, they're down about 25 percent.