Vista Metals to launch $17 million expansion

September 25, 2014

Citing growing demand for its smelting and fabrication businesses, Vista Metals is moving on a $17 million investment for its Adairsville location.

Expected to create 25 to 30 jobs, the investment will expand the existing 57,500-square-foot aluminum facility and related manufacturing and distribution operations. The funds will come from bonds approved during a Wednesday meeting of the Development Authority of Bartow County.

“They approached us about inducing them to have an expansion of their facility here,” said authority attorney Boyd Pettit. “I approached the county about this. It is certainly within our guidelines. It is about a $17 million expansion. There is no additional real estate in connection with this, but there will be an additional building done for this, as well as the improvements, which are additional ovens that will go in that are part of the smelting operation.”

The bond resolution was approved specifically for VMC Speciality Alloys LLC and AL7 LLC. The bond process is expected to be finished by the end of October.

Pettit noted that Vista Metals’ original investment in its Adairsville site came to approximately $20 to $24 million, meaning the aluminum-oriented expansion represents a near doubling of the investment.

Bartow County Commissioner Steve Taylor, who was present for the meeting, noted that Vista Metals has become a community partner though its investments and volunteer work, and he thanked the company for continuing to operate in Bartow.

As he spoke to the board, Pettit explained that the development authority was not responsible for the bonds.

“Something that’s also important to remember is that these bonds are not in any way the obligation of the city of Adairsville, Bartow County, nor are they the responsibility of the Development Authority of Bartow County to repay in the event that the company does not make payments. The company is solely responsible for the payments,” he said.

In addition, the bonds will be tax exempt. Vista Metals, which qualifies as a recycler, was able to apply for the exempt status through the Department of Community Affairs. However, the exempt status applies only to the interest on the bonds and not any form of property tax.

“I’m always careful to explain that that has nothing to do with the ad valorem tax paid in Bartow County,” Pettit said after the meeting. “That is that the bonds that are issued ... the interest on the bonds is tax exempt to the owner of the bond — meaning they don’t have to pay income tax on the interest that’s earned.”

Article from The Daily Tribune News - Jason Lowrey