Commonwealth of Kentucky
Cabinet for Economic Development

NORTH AMERICAN STAINLESS TO INVEST $50 MILLION IN CARROLL COUNTY

Governor Ernie Fletcher's JOBS For Kentucky cited in company's decision

Frankfort, Ky. - Citing the inclusion of recycling tax credits in Governor Ernie Fletcher's historic tax modernization as an important factor, officials from North American Stainless announced today the addition of a new electric arc furnace at its Ghent facility. The project represents a $50 million investment in the commonwealth.

"One of the goals of my JOBS For Kentucky tax modernization plan is to make the commonwealth a more attractive place to do business. Economic development is the top priority of my administration," said Governor Fletcher. "I want to thank North American Stainless for this investment and the confidence they continue to place in the commonwealth."

By utilizing the existing furnace on a standby basis and replacing it with a newer, more modern furnace for primary production, the investment will allow North American Stainless to improve the recycling of scrap material and increase overall melting efficiencies.

"We are very pleased the Governor and the General Assembly chose to include provisions which encourage recycling in the tax modernization legislation," stated José M. Cornejo, President of North American Stainless. "The recycling tax credits were important in our decision to make this investment in Kentucky. Our investment in this plant and our employees continue to fulfill our promise that our Kentucky factory will be the finest stainless steel mill in the Western Hemisphere."

With an expected completion date of October 2006, the project will be well underway when more than 150 world leaders of the stainless steel industry, representing 21 countries, attend the 10th Annual International Stainless Steel Forum (ISSF) to be held in Kentucky in May 2006.

North American Stainless, as part of the Acerinox Group, is owned by Acerinox, S.A. of Madrid, Spain and represents the largest Spanish investment in the United States. Since 1990, Acerinox has invested more than $1.3 billion in its Kentucky facility and currently employs 1,030. The Acerinox Group is the third largest stainless steel producer in the world and consists of factories and service centers across the globe. For more information on North American Stainless, please visit their website at http://www.northamericanstainless.com/.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2004 totaled nearly $2.3 billion with the creation of just over 16,600 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.