Rosemount-based Spectro Alloys Set for $5.8M Expansion with Help from State Grant
Aluminum recycler Spectro Alloys Corp. is investing $5.8 million to expand its facilities in Rosemont and hiring 10 new workers, all with help from a state grant, the company announced on Friday.
With the addition of two furnaces, the Rosemount-based company will be able to take in types of aluminum that its current equipment can’t process, like aluminum with iron attachments, explained Spectro Alloys president Luke Palen.
“It will open the door to material that’s being shipped to other places and to other regions. We’ll have the ability to recycle it here, at our Minnesota facility,” Palen told TCB.
The new furnaces will be installed in a new, fully-enclosed 5,000-square-foot building addition, and the new jobs — furnace operator, assistant furnace operator, as well as maintenance positions — will pay wages averaging $20.80 an hour, according to a press release from Minnesota Department of Employment and Economic Development (DEED).
DEED is supporting the project with a $146,007 grant that will help cover the cost of the new hires and sales tax on the new building material, Palen said. The money will come from the state’s Job Creation Fund, which provides grants to businesses after they meet certain criteria for job creation and investment.
To be eligible, businesses must create at least 10 full-time jobs and invest at least $500,000 if they are in the Twin Cities metro, or create at least five full-time jobs and invest at least $250,000 if they’re located in Greater Minnesota, according to DEED.
Palen said that aluminum recycling tends to be a regional business, and the companies they supply are principally local manufacturers, like Bloomington-based Toro Company, which makes products for lawn care and snow removal.
“The scrap gets generated locally, gets melted down in our furnaces, and then it turns into ingot that we’ll sell to Toro,” Palen said. “And they’ll turn it into a new lawn mower that’ll get pushed around my backyard once a week.”
He said the state support was important as competitors in other regions were also adding new, similar equipment, and the addition of the new furnaces will help Spectro stay competitive.
“We’re the only ones that do what we do in Minnesota and it's good having the support for the recycling process in the state here.”