Chief Executive

Six Lessons from CEO’s Huge Aluminum Gambit in Appalachia

By Dale Buss

The ongoing construction of a $1.6-billion aluminum-rolling mill in Ashland, Kentucky, ticketed with the economic hopes and dreams of an entire region, is about as big and bold as an entrepreneur can go. But there are lessons for other business leaders in how Craig Bouchard, CEO of Braidy Industries, has approached his attempt to build his fourth billion-dollar company.

When Braidy opens its mill in 2020, it’s expected to employ about 600 people who’ve been plucked from a pool of more than 7,000 applicants for jobs that Bouchard says will pay between $50,000 and $70,000 a year. Another 150 jobs are supposed to materialize in an associated metal-alloy plant nearby. And in the meantime, Bouchard expects to employ about 1,600 people doing construction.

This would go a long way toward reversing the devastating economic slide of a part of Appalachia that has lost not only many coal-mining jobs, but also thousands of manufacturing positions in the last couple of decades. Bouchard also expects his investment to help solve a deep-seated plague of opioid addiction in eastern Kentucky.

Read the full article at Chief Executive

Forbes

Auto OEMs Look To New Braidy Industries Mill In Kentucky To Ease Aluminum Shortage

Dale Buss

The auto industry’s challenge is Craig Bouchard’s opportunity. Orders for formed aluminum sheet products from his company’s new rolling mill in Ashland, Kentucky, through 2026 were already at 140 percent of output that’s expected when the $1.6 billion facility opens in 2020.

Then President Trump slapped tariffs on imported aluminum, and Bouchard said that purchasers’ subscription level now stands at 200 percent. “We got a hyper-boost from tariffs,” the CEO of Braidy Industries told me. “All of the car companies bought us. There’s already a shortage of aluminum in North America”  as OEMs push to “lightweight” their vehicles in every way possible. “This is going to be the first aluminum-rolling mill designed specifically for the auto industry.”

It’ll also be reportedly the first new aluminum mill in the United States in three decades. At the same time, Braidy will present automakers with a “dual sale” opportunity because, as Bouchard was putting together the Ashland complex, Braidy also acquired Veloxint, an MIT-incubated company that males ultra-high-strength alloys.

Besides coming up with timely supplies of aluminum for automakers, the Braidy mill will carry the economic hopes and dreams of an entire part of Appalachia. It’s expected to employ about 600 people who’ve been plucked from a pool of more than 7,000 applicants for jobs that Bouchard says will pay between $50,000 and $70,000 a year. Another 150 jobs are to be offered at the alloy plant. In the meantime, Bouchard expects to employ about 1,600 people during construction.

Read the full article at Forbes

Breitbart

Aluminum Mill to Bring 550 Jobs Back to Kentucky Town Crippled by Free Trade

by John Binder

The people of Ashland, Kentucky will see 550 high-paying jobs come back to their small community thanks to a new aluminum mill that is set to open in 2020.

Braidy Industries is opening a new aluminum mill in the northeast Kentucky region after President Trump implemented a ten percent tariff on imported aluminum to protect American industry and jobs.

The aluminum mill, known as Braidy Atlas, will employ about 550 workers and is set for its first production in a just a couple years, where it will be the world’s lowest cost aluminum plant, according to Kentucky Today. Already, Braidy Atlas executives say their first seven years of aluminum production are sold out.

Likewise, the Ashland aluminum mill will be the world’s most technologically advanced plant in the world and will have a production line that stretches 104 inches long. This will make it the widest aluminum mill in all of North America.

Read the full article at Breitbart

The Washington Post

Did Trump’s aluminum tariffs spark a $1.5 billion plant in Kentucky?

By Glenn Kessler, June 7, 2018


The president wants to shrink the trade deficit. The Fact Checker explains why a deficit isn’t all bad. (Meg Kelly/The Washington Post)

“Just last Friday, we had a plant, a groundbreaking in Ashland, Kentucky, the heart of poverty in America in Appalachia. $1.5 billion aluminum rolling mill because of the president’s tax and tariff policy.”
– White House aide Peter Navarro, interview on Fox News, June 4, 2018

 

“This is a story that’s truly remarkable and Donald J. Trump has brought in tax cuts, deregulation and trade policies that are working for the American working people. And guess what, on Friday they opened a $1.5 billion groundbreaking aluminum rolling mill in Ashland, Kentucky.”
– Navarro, interview on Fox News, June 3

The Trump administration, led by the president, is quick to claim credit for good news even if its policies may have had little to do with it. So our antenna went up when we saw Navarro, the White House director of trade and industrial policy, repeatedly attribute the building of a rolling aluminum plant in Kentucky to the president’s tariff and tax policies.

It takes time to build and plan a factory. But the president only announced tariffs of 25 percent for foreign-made steel and 10 percent for aluminum on March 1, so how is this possible?

Read the full article at the The Washington Post
 

CNBC

CNBC Interview About Proposed Tariffs

Braidy Industries CEO: Overall Tariffs Effect Very PositiveCEO Craig Bouchard lights up CNBC in an interview about proposed tariffs on aluminum imports. Watch him talk about the positive effects expected for our industry, our company, and jobs in America.

See Full Video at CNBC >

Executive Interview, Craig Bouchard: Play Hard, Fight Hard, Win

American Metal Market

Originally published August, 2013

Play Hard, Fight Hard, Win

Craig BouchardThe competitiveness comes naturally. Bouchard was raised in a houshold which embraced and thrived on a ‘winner-take-all’ attitude and where the former Inland Steel put food on the table.

No matter the weapon of choice—the nearest pillow, a blazing fastball, a crushing backhand or a highstakes proxy vote—Craig Bouchard loves a good fight. And over a career spanning more than three decades and stints as an investment banker, chief executive officer of a risk management software company, dealmaker, takeover artist, financial wizard, steel mogul, author and entrepreneur, he’s made a habit of winning.

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Craig Bouchard, U of C, Chicago Booth Magazine

Craig Bouchard, ’81

Chicago Booth Magazine (U of C)

Originally published October, 2015

The entrepreneur reflects on tossing out an entire board of directors, the joy of making hard-working employees into millionaires, and the importance of bedtime stories for kids.

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Real Industry: CEO Loss Stings

Seeking Alpha

by Peter Kaye

Summary

  • A core part of my thesis hinged on a skilled capital allocator presiding over Real Industry.
  • The resignation of Mr. Bouchard detracts from the attractiveness of RELY as an investment.
  • I’m adjusting my target price from $13.92 to $10/share in light of the uncertainty surrounding this management change.

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Signature Group: An Opportunity to Tag Along With Sam Zell

Acquisition strategy and a big swath of federal net operating tax-loss carryforwards, which could pay off for investors in Signature Group.

Barron’s

By David Englander

Last week, this column highlighted the opportunity present in the shares of Covanta Holding, pointing out that the waste-to-energy company (ticker: CVA) has long benefited from its association with investor Sam Zell.

Zell is well known for his success at turning around businesses, often becoming involved at the bottom. Investors usually have done well to tag along.

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Recycling Twist Cuts Ford Truck Costs

Wall Street Journal

By Mike Ramsey and John W. Miller

Ford Motor Co.’s decision to build a lighter-weight pickup truck using aluminum body-panels has been billed largely as a way to achieve better fuel economy. The company’s boss says it is also a recycling play.

The 2015 F-150, perhaps the most important vehicle to hit Ford dealerships in decades, goes on sale this month. By the time a new truck exits the factory and heads for the showroom, it will have left behind $300 worth of scrap aluminum on the plant floor.

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