Updated with pay ranges, economic impact, details of Nyrstar Zinc purchase.

CLARKSVILLE, TN (CLARKSVILLE NOW) – As part of a White House deal to protect critical metals for the U.S., Korea Zinc announced Monday it will purchase Nyrstar Zinc in Clarksville and build a new $6.6 billion smelter. The site will also house the company’s U.S. headquarters, combined creating 420 new jobs in Montgomery County over the next five years.

The move also includes a new production facility in Gordonsville, creating 320 jobs in Smith County. In Gordonsville, the company plans to reopen a former mine, bringing back lost jobs and industry to the community, according to a state news release.

The announcement represents the company’s first U.S. locations and the largest single private corporate investment made in state history, the release said.

Purchasing Nyrstar Zinc smelter in Clarksville

The US has to date had only one primary zinc smelter, the one in Clarksville on Moore Road operated by Nyrstar, a subsidiary of Trafigura Group. Korea Zinc will purchase the Nyrstar plant and develop a new state-of-the-art fully integrated large-scale smelting facility on the site, according to a company statement.

Korea Zinc has entered into a strategic partnership with the U.S. Department of War and the U.S. Department of Commerce, who will jointly invest in the construction of the large-scale smelter. The project, referred to as the “U.S. Smelter,” is expected to have $6.6 billion in capital expenditures, with a total planned investment of $7.4 billion including working capital and financing costs, the company said.

Nyrstar confirmed the transaction in a statement to Clarksville Now. “This transaction would enable a secure and stable US zinc and zinc by-products supply for the future,” said Nyrstar CEO Guido Janssen. “Korea Zinc is a world leader in smelting technology, and we are confident they will build on the strong foundations Nyrstar has laid in the state of Tennessee.”

6.99 million-square-foot facility in Clarksville

Korea Zinc will construct an integrated smelter of approximately 6.99 million square feet in Clarksville, based on the model of its Onsan Smelter in Ulsan – the world’s largest single-site smelter by production capacity – with world-leading smelting technology, optimal processes, and state-of-the-art control systems, the statement said

Construction of the U.S. Smelter will begin with site preparation in 2026, followed by phased commercial operations beginning in 2029. The facility will process approximately 1.1 million tons of raw materials annually and produce a total of 540,000 tons of finished products – materials essential for chip-making, defense and aerospace.

The 13 planned products include basic industrial metals such as zinc, lead, and copper; precious metals including gold and silver; and key strategic minerals such as antimony, indium, bismuth, tellurium, cadmium, palladium, gallium, and germanium. The list also includes sulfuric acid and semiconductor-grade sulfuric acid, the company statement said.

Over 1,300 jobs announced this week in Clarksville

The announcement comes less than a week after auto parts manufacturer T.RAD announced it will build a plant in Clarksville bringing 928 jobs in a $90.2 million investment. Its plant will be in the Clarksville-Montgomery County Corporate Business Park South, and average starting wages for production workers will be $21.63. That adds up to over 1,300 new jobs announced this week in Clarksville.

U.S. Smelter will offer salaries ranging from $83,000 to $196,000 annually, according to the Clarksville-Montgomery County Economic Development Council.

Buck Dellinger, CEO of the EDC, thanked state and local leaders for landing the project, which comes on the heels of the massive LG Chem announcement. “Two deals totaling more than $9.8 billion in a few short years doesn’t happen by accident. It’s the result of a great business environment that begins at the state level,” he said. “LG Chem validated our workforce and infrastructure capabilities. Korea Zinc proves we can sustain that momentum.” 

The announcement positions Clarksville as home to two of Tennessee’s three largest direct foreign investments, eclipsing Ford Motor Company’s BlueOval City project near Memphis.

Korea Zinc will generate the following economic benefits for Montgomery County, according to the EDC:

  • $288.6 million net benefit to Montgomery County over 20 years.
  • Montgomery County: $210 million.
  • Clarksville-Montgomery County School System: $78 million.
  • 420 new direct high-wage jobs with salaries ranging from $83,000-$196,000.
  • 320 retained jobs at existing operations.
  • 740 total direct jobs at the expanded facility.
  • 1,464 total jobs including spin-off employment through suppliers, contractors and supporting services.

The facility will be located at the Nyrstar site on Moore Road in Montgomery County, spanning approximately 1,200 acres. The site’s multimodal transportation infrastructure, with direct rail access and Cumberland River barge capability provided a decisive competitive advantage, the EDC said.

Job creation is expected to reach full capacity by 2030, with phased hiring.

State and local incentive package for Korea Zinc

The Clarksville-Montgomery County Industrial Development Board approved a Tier 5, 20-year PILOT (Payment in Lieu of Taxes) agreement that phases in property tax over time based on the company’s $6.6 billion capital investment and job creation commitments. The State of Tennessee extended a $45 million FastTrack economic development grant.

“The PILOT agreement generates $288 million in net benefit to Montgomery County and our schools over 20 years,” said Josh Ward, executive director of the IDB. Without incentives, we’d have zero jobs, zero investment, and zero revenue. With it, we’re building a tax base that will generate revenue long after the abatement period ends.”

Turning to Korea for minerals, not China

The deal with Korea Zinc builds upon agreements announced Sunday with the White House, and, subsequently, the U.S. Department of Commerce, the Department of War and other partners that rely on the company’s critical and strategic mineral products. Korea Zinc’s refining plays a vital role in supporting advanced military technology and safeguarding national and international security by reducing the nation’s dependence on China for critical minerals.

The joint announcement – by Gov. Bill Lee, Deputy Gov. and Department of Economic and Community Development Commissioner Stuart C. McWhorter and Korea Zinc Chairman Yun B. Choi – is a direct result of Lee and McWhorter’s recent international recruiting trip to Asia. “With the company’s total investment of more than $6 billion, this project further strengthens the longstanding relationship between Tennessee and South Korea and reinforces a partnership built on innovation, manufacturing excellence and shared values,” the release said

Since Gov. Lee took office, South Korea has emerged as one of the state’s top partners for foreign direct investment in creating new jobs and investing capital – a total of $7.2 billion invested during this administration. With Korea Zinc’s investment, South Korea will become the state’s No. 1 international partner for capital invested statewide since 2019.

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