LISBON — A company planning to build a new high tech secondary aluminum billet casting facility with a $130 million investment is looking at Columbiana County for a possible location.

MX Holdings, in a joint venture with Century Aluminum, announced the project “aims to create jobs and opportunities for the local communities and will allow us to employ approximately 55 individuals at different levels and skillsets, while further investing in our staff through training and development opportunities.”

Mark Butterfield, of MX Holdings, said the decision on where to locate the plant can be expected in the next few months, with sites in the Ohio valley and Pennsylvania under consideration. He said the footprint being sought is at least 20 acres.

“We are extremely excited about this huge economic development opportunity for Columbiana County. The Port Authority has been working diligently with the company and our partners Team NEO, Jobs Ohio, Columbiana County commissioners, county Economic Development, the Ohio Department of Transportation and the Village of Leetonia, to structure a competitive incentive package. The company has always been a great community partner and we are here to support their expansion in any way we can,” Columbiana County Port Authority Executive Director/CEO Penny Traina said.

MX Holdings is the parent company for Pennex, which has a location in Leetonia at the port authority’s World Trade Park.

In preparation for the possibility that the company could choose Columbiana County for the new plant, the port authority board on Monday approved a resolution of intent to reimburse original expenditures with proceeds of tax-exempt revenue bonds to MX Holdings, with the maximum principal amount of tax-exempt revenue bonds expected to be issued totaling $130 million.

Russell Balthis, bond counsel from Squire Patton Boggs, explained the resolution in no way obligates the port authority to pay anything. Tax-exempt bonds must be issued by a government entity, in this case the port authority. The issuance of bonds is basically a way for a company to borrow money.

Under normal circumstances, a company can reimburse itself for expenses that occur 60 days prior to the issuance of bonds, using the bonds for the reimbursement. With approval of an intent to issue tax-exempt bonds, the company can reimburse itself for expenses beyond the 60 days to when the intent is approved, even if the bonds aren’t issued for six months, according to Balthis.

The bonds can be used for capital expenses, such as engineering or architectural plans.

“We’re poised to have that $130 million investment in Columbiana County,” Traina said.

She and her staff and other partners have been working on the possibility of the large investment for months and she told the board it’s pretty exciting news.

“We are committed to bringing that company and those jobs to Columbiana County,” she said.

Board Chairman Charlie Presley commended Traina and her staff for the work done on this possible deal. He said it’s good for everybody in the county and good for economic development and a huge step forward.

Butterfield said the company is anxious to break ground as soon as the location is determined, with the anticipated ground breaking in September or October.

“We saw a need in the market for low carbon,” he said.

According to a company statement, “The joint venture between Century Aluminum and MX Holdings will use the latest technology from start to finish to produce low carbon, highly recycled aluminum for all types of market segments, such as automotive, building and construction and renewable energy. This new venture will be the largest American-owned secondary billet supplier, worldwide.”

MX Holdings will retain 51 percent controlling interest of the joint venture and will build and operate the facility. The two companies have “complementary expertise in primary aluminum production, scrap trading, secondary casting and extrusion and fabrication.”

The plan is to be in production by the fourth quarter of 2026. Butterfield said the plant will use 70 percent recycled scrap aluminum to produce billets, which can then be used by aluminum extruders. He described a billet as a round log that can vary in length. He explained that the Pennex location in Greenville, Pa., produces 115 million pounds of billets and the location in Wellsville, Pa. produces 150 million pounds. The new facility is expected to produce 260 million pounds of high quality billets using the latest technology.

Butterfield noted the new facility will be a separate operation from any Pennex facilities. He did comment that “the Ohio valley really is at the heart, lot of density for the customer base,” noting an additional value with Pennex being in Leetonia.

The company statement said the project will “be an anchor for future growth and expansion of the operations in Leetonia, where Pennex plans to invest substantially in the next five years.”

Pennex expanded the Leetonia facility twice so far, in 2015 and 2020, and plans to expand again in the next two to five years.

“We have a strong track record of environmental, safety and community engagement. This project allows us to expand our commitment to our community and sustainability,” the statement said.

mgreier@mojonews.com