NEW MADRID, MO (KFVS) - Noranda Aluminum Holding Corporation announced on Monday, June 15 that it has obtained $15 million of project-specific financing that will allow it to complete a state-of-the-art redraw rod mill at its aluminum smelter in New Madrid, Missouri.
The company says the new rod mill will increase Noranda's production capacity by approximately 43 percent and will exemplify the latest cutting-edge technology in the North American marketplace.
The rod mill is geographically located in an advantageous section of North America which the company says affords customers shorter transportation distance and lower freight costs. They say they have already received interest from customers for a majority of the new rod mill's capacity.
The company expects the new rod mill to cost approximately $55 million, of which approximately $15 million remains. The company expects production at the mill to begin during the second quarter of 2016.
On April 29 the PSC established a reduced electricity rate structure for the company's aluminum smelter in New Madrid. At full production, the new structure is expected to reduce New Madrid's annual power cost by approximately $17 to $25 million per pound of primary aluminum sold.
The lower rate structure became effective on or around June 1 and carries a term of at least three years.