U.S. Smelters, Foundries to Add, Improve Capacity Amid Tariffs

Researched by Industrial Info Resources (Sugar Land, Texas)--As the downstream sectors of the U.S. Metals & Minerals Industry work their way through the complex effects of U.S. President Donald Trump's tariffs on imported aluminum and other metals, which recently were raised from 25% to 50%, many players are pushing ahead with expansion and improvement projects at their key facilities. Industrial Info is tracking more than $1.5 billion worth of capital-spending projects at U.S.-based smelters, foundries and forges that are set to begin construction in the third quarter, the bulk of which is attributed to grassroot projects.

Click on the image at right for a graph detailing the top 10 parent companies for projects at U.S.-based smelters, foundries and forges that are set to kick off from July through September.

Element 25 Limited (Osborne Park, Australia) is among the leading investors in the smelting sector for the near term, largely due to a planned, $289 million refinery in Darrow, Louisiana. The company plans to import 72,000 tons per year of manganese ore concentrate from Western Australia into 65,000 tons per year of battery-grade, high-purity manganese sulphate monohydrate (HPMSM), among other activities. It is not year clear how U.S. President Donald Trump's tariffs on imported goods could affect this project.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from a detailed project report and plant profile.

Century Aluminum Company (Chicago, Illinois), which is the largest producer of primary aluminum in the U.S., is among the companies preparing to update their smelters through equipment refurbishments and upgrades. This includes $10 million in refurbishments at its Sebree Aluminum Smelter in Robards, Kentucky, covering major components such as an anode press. Subscribers can learn more from a detailed project report and plant profile.

In a recent quarterly earnings-related conference call, Jesse Gary, the chief executive officer of Century Aluminum, was positive about Trump's tariffs: "We have long prided ourselves on sourcing locally for each of our operations and at Sebree and Mt. Holly, we continue to source most of our key cost inputs from American suppliers. In response to the president's groundbreaking actions, we have now taken further steps to shorten and secure the remainder of our major supply chains consistent with the intent of the reciprocal tariff program."

Executives at ATI Incorporated (Dallas, Texas), a leading producer of titanium and nickel-based alloys, among other specialty products, were more measured about the effects of Trump's tariffs in its most recent earnings call. But they said the tariffs were having "little effect" on the aerospace and defense markets, two of ATI's biggest customers, and that the company "continues to see strong engine material orders, with no cancellations or back pushouts."

"We have a pretty diversified, nimble supply chain," said Kim Fields, the chief executive officer of ATI, in the earnings call. "We're able to move our supply to low-cost sources, depending on how the trade and tariff environment evolves and how those trade deals evolve. So, we're continuing to monitor that and use those levers to make sure that we're tapping into the lowest-cost supply."

ATI is preparing for $3 million in additions and upgrades to its titanium alloy melting plant in Monroe, North Carolina. Fields said her company "finalized a major new contract with a leading airframe OEM" (original equipment manufacturer) during the first quarter and that executives were "very, very pleased" with the recent growth in titanium prices. Subscribers can learn more from a detailed project report and plant profile.

Foundries and forging facilities across the U.S. are looking mostly at a mix of mid-size expansions and small-scale upgrade programs in the third quarter. They include Alupress AG (Brixen, Italy), which is preparing for an expansion of its die-casting foundry in Laurens, South Carolina, and Metal Technologies Incorporated (Auburn, Illinois), which is preparing for $3.5 million worth of capital improvements at its ductile iron plant in Ravenna, Michigan. Subscribers can read detailed reports on the Laurens and Ravenna projects.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of capital-spending projects at U.S.-based smelters, foundries and forges that are set to begin construction in the third quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).