The Federal Metal Company Chooses North Little Rock for New Manufacturing FacilityMarch 16, 2023
NORTH LITTLE ROCK, Arkansas (March 16, 2023) – The Federal Metal Company, an industry leader in copper-based cast alloys since 1913, today announced it is expanding its footprint into North Little Rock, Arkansas, 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.
“We are excited that Federal Metal has selected North Little Rock as their newest location,” commented Mayor Terry Hartwick. “The site housed a successful business in the past and will now be home to this 100 plus year old company for the future.”
“This investment, and our recent acquisition in eastern Pennsylvania, are made with conviction in the future growth and competitiveness of U.S. non-ferrous metals manufacturing,” added Nagusky. “Manufacturers of aluminum fin stock, foil, and can sheet, and the manufacturers of copper tube, wire rod, bus bar, and other shapes all have exacting specifications. This facility will help us supply one-of-a-kind solutions to our customers, and in greater volumes, without the chemistry variation often associated with scrap.”
"We are proud that Federal Metal has selected North Little Rock to build its ‘first of its kind’ recycling facility,” said Robert Birch, director of development for the city of North Little Rock. “Revitalizing the Ben E. Keith building is great for the city and the community on Pike Avenue. Reimagining buildings like Federal Metal is doing helps strengthen areas of the city that would otherwise face possible decline.”
For more information about The Federal Metal Company, visit their website at www.federalmetal.com.
About The Federal Metal Company
Since 1913, headquartered in northeast Ohio, The Federal Metal Company has been an industry leader as a manufacturer of high-quality copper-based alloys. While staying rooted in old-school integrity, beliefs and values, the company continues to grow and innovate to satisfy the growing global demand for copper, aluminum, and non-ferrous alloys. In September 2022 it acquired the assets of SA Alloys in Columbia, Pennsylvania.
About the Arkansas Economic Development Commission
The Arkansas Economic Development Commission (AEDC), a division of the Arkansas Department of Commerce, seeks to create economic opportunity by attracting higher-paying jobs, expanding, and diversifying local economies in the state, increasing incomes and investment, and generating positive growth throughout The Natural State. Arkansas is a pro-business environment operating leaner, faster and more focused through a streamlined state government designed to act on corporate interests quickly and decisively. For more information, visit www.ArkansasEDC.com.