Century Aluminum Joins with South Carolina Governor Henry McMaster and USC Economist Dr. Von Nessen to Unveil Findings of an Economic Impact Study
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Insights
The disclosed economic impact of Century's Mt. Holly facility underscores the facility's substantial role in the state's economy. With an annual contribution of $772.9 million and the sustenance of 1,439 jobs, the facility evidently plays a critical part in the economic vitality of South Carolina. The multiplier effect, where for every 10 jobs at Mt. Holly, an additional 22 are created statewide, highlights the facility's significance beyond its direct employment figures.
It's important to note that the average wage at Mt. Holly is considerably higher than the state average, suggesting that the facility promotes not just employment but quality employment. This can lead to increased consumer spending and tax revenues, which are beneficial for local economies. However, the reliance on a single employer or industry can pose risks should the facility face economic downturns or competitive pressures.
Furthermore, the potential expansion to reach full production capacity could result in an even greater economic impact, potentially increasing the total direct economic contribution to approximately $877.0 million annually. Such growth could bolster the regional economy, though it may also intensify the region's dependency on the aluminum industry.
From a market perspective, Century Aluminum's Mt. Holly facility contributes significantly to the industry's competitive landscape. The high average wages paid by the facility, 46% higher than the state's average, are indicative of the specialized nature of the jobs provided. This could attract a skilled workforce and possibly lead to a more innovative and efficient operation.
The study's findings may also reflect positively on Century's corporate reputation, which could influence investor perception and potentially the stock price. Investors often look favorably on companies that demonstrate strong local economic ties and sustainable employment practices. However, it is crucial to monitor how these economic contributions translate into financial performance for the company and its shareholders.
The mention of a diverse workforce, with approximately 59% being African American, is also noteworthy as it aligns with increasing investor interest in social responsibility and diversity. This aspect of the company's operations may appeal to socially conscious investors and could impact investment decisions.
Analyzing the labor implications, the high average wage at Century's Mt. Holly facility, which is almost 90% higher than the state's average, indicates a significant investment in human capital. This could lead to higher productivity and lower turnover, which are beneficial for both the company and the economy. However, it raises questions about wage pressure and the sustainability of such high wages in the long term, especially in a competitive global market.
The workforce's demographic composition, with a high percentage of African American employees, may also indicate Century's commitment to diversity and could have broader social implications. This could contribute to reducing income inequality and increasing economic mobility within the community. Yet, there is a need to consider the potential challenges in maintaining such a workforce, including the need for continuous skills development and the impact of automation on job security.
CHICAGO, Feb. 20, 2024 (GLOBE NEWSWIRE) -- Today, leaders from Century Aluminum Company (NASDAQ: CENX) (“Century”) joined with South Carolina Governor Henry McMaster and economist Dr. Joseph Von Nessen of the Darla Moore School of Business at the University of South Carolina (“USC”) to unveil the results of a study conducted by USC that examined the economic impact of Century’s Mt. Holly facility (“Mt. Holly”) on the local and state economy. In particular, the study documents the tremendous economic impact that Mt. Holly has on the state of South Carolina, where the average wage among all direct jobs supported by Century Mt. Holly is
“We are proud of the significant role that Mt. Holly plays in the Lowcountry economy. This new study finds that the annual economic impact of Mt. Holly is over
“We pride ourselves on creating an economic climate that allows businesses to provide the best economic opportunities to our citizens. Mt. Holly has been instrumental in creating hundreds of good-paying family sustaining jobs,” said South Carolina Governor Henry McMaster. “Century Aluminum’s Mt. Holly plant is clearly a unique economic driver for South Carolina.”
“Century Mt. Holly is generating a higher return on employment for the state than many other businesses of comparable size. For every 10 jobs that are created by Mt. Holly, another 22 jobs, on average, are created elsewhere in South Carolina,” remarked Dr. Joseph Von Nessen, research economist at the University of South Carolina. “These high wage jobs also support a diverse employment base. For example, approximately
According to the report, currently Mt. Holly:
- Contributes
$772.9 million annually to the state’s economy. - Creates and sustains 1,439 jobs for a total annual labor income of
$112.9 million . - For every 10 jobs created in Mt. Holly, another 22 are created elsewhere in South Carolina (for a total of 32 jobs).
In addition to its economic contributions, Mt. Holly is also known for providing high-quality employment opportunities, which is evident in the wage levels of all jobs supported by the facility, both directly and indirectly, in the surrounding area. On average, all jobs supported by Mt. Holly (directly or indirectly) pay
Despite the already sizable economic impact that Mt. Holly maintains on both the Charleston tri-county region and the state of South Carolina, Century is actively reviewing the opportunity to increase its production an additional
Century Aluminum was established in 1995, with Mt. Holly being one of its initial facilities. In the nearly 30 years since its inception, Century has significantly expanded its operations to include both domestic and international locations. In South Carolina, primary aluminum and metal production has been a part of the state's manufacturing industry for a long time. Although the industry has faced significant challenges in recent years due to international competition, aluminum production at Century's Mt. Holly smelter in Charleston has remained a significant driver of economic activity in the local region.
About Century Aluminum Company
Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Chicago, IL. Visit www.centuryaluminum.com for more information.
Cautionary Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may." Our forward-looking statements include, without limitation, statements with respect to: the ultimate effects and expectations of the new collective bargaining agreement, global and local financial and economic conditions; future aluminum pricing and the costs of our major raw materials.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, quarterly reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, investors are cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
Ryan Crawford (investors and media)
investorrelations@centuryaluminum.com
(312) 696-3132
FAQ
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