The Federal Metal Company, an industry leader in copper-based cast alloys since 1913, revealed the expansion of its footprint into North Little Rock, where the company is building a new manufacturing facility to recycle post-consumer aluminum copper radiators. Federal Metal will invest approximately $17.8 million in the facility and create 40 new jobs within four years.
This will be the company’s first facility in Arkansas.
“Major investments in new mill, foundry and refining capacity are underway in the United States for the first time in generations, and it’s important the scrap industry here keeps pace to assure the domestic supply chain is well fed,” said Peter Nagusky, Federal Metal’s President and CEO. “It is wasteful when valuable scrap like these radiators are exported [to support non-U.S. manufacturing]. Companies producing semi-finished copper and aluminum will need to increase the recycled content of their products by using more scrap and less primary metal. The main reasons are clear: it is economically advantageous and environmentally sustainable.”
“Arkansas is home to skilled workers, pro-business policies, and world-class hospitality. Companies like Federal Metal are starting to notice, and we’re excited to welcome them to our state,” said Governor Sarah Sanders. “This expansion project will bring millions of dollars and dozens of jobs to North Little Rock, strengthening all of Central Arkansas’ economy. I look forward to building on the strong business environment that brought Federal Metal here and making the Natural State even more attractive for future investment.”
“Importantly, this strategic location is convenient for our supplier partners and close to several key customers,” continued Nagusky. “We are looking forward to a long partnership with the city of North Little Rock and the state of Arkansas. With their help, and the talent available to us within a mile of downtown Little Rock, this specialized operation will quickly emerge as the most advanced of its kind in the world.”
In 2020, Federal Metal developed its PSA® (pre-melt specification aluminum) products, which offer cost savings to rolling mills that would otherwise be using more expensive prime aluminum or aluminum RSI (remelt secondary ingot). In addition to generating direct melt C11000 copper, the company is currently developing fire-refined copper products to offer cost savings to mills that would otherwise be using more expensive copper cathode.
“The metals industry plays a key role in the vibrancy of the Arkansas economy, accounting for about 13.6 percent of total manufacturing,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “More than 22,000 Arkansans are employed in the industry. I am confident that Federal Metal will find the resources and workforce they need to take this next step in their success story.”
Federal Metal has already started hiring its team, specialized equipment is on order, and they plan to be operational mid-2023. The company will be able to recycle more than 3,000 metric tons per month of aluminum copper radiators in North Little Rock.
For more information about The Federal Metal Company, visit their website at www.federalmetal.com.
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