PRCO America, Inc. first to benefit from Riverport’s “Foreign Trade Zone” designation

Graves County’s PRCO America, Inc. is the first local manufacturer to take advantage of the Foreign Trade Zone (FTZ) designation at the Paducah-McCracken County Riverport Authority and the first to import foreign goods through the Riverport, reinforcing the value of Western Kentucky’s excellent transportation network.

“PRCO America, Inc. would like to thank everyone involved for their successful efforts in achieving the “Foreign Trade Zone” designation at the Paducah Riverport,” said Barry Heath, Vice President of Operations and Plant Manager at PRCO-America. “It took a team of dedicated individuals from the Paducah Riverport, the Economic Development Administration and PRCO America, Inc., working with U.S. Customs to achieve this opportunity.”

“The FTZ designation allows deferred duty and tariff payments until we remove the imported raw material from the Paducah Riverport for use at our facility, instead of having to incur the entire expense for shipments at the time of arrival in Paducah,” Heath explained. “This allows PRCO America, Inc. to remain competitive in the United States steel manufacturing market.”

Heath noted PRCO America has plans to expand production later this year, but, “Without the FTZ, our growth could be slowed.”

“The Riverport has had a Foreign Trade Zone in place for several years, but with the recent changes to tariff rates, we have witnessed huge interest in the opportunities the FTZ presents for Western Kentucky,” said James H. Garrett, Executive Director, Paducah-McCracken County Riverport Authority. “The FTZ is proving to be an economically viable option for affected distributors and manufacturers.”

“This is an outstanding example of regionalism at work,” said Graves County Economic Development President Jason Lemle. “The Paducah-McCracken County Riverport Authority secured this important designation and now an industry in Graves County is reaping the benefits of their vision. We are grateful to the Riverport and to the Greater Paducah Economic Development for their leadership. Ultimately, we all work together to protect and grow good jobs for people in Western Kentucky.”

“The Foreign Trade Zone at the Paducah–McCracken County Riverport strengthens both our local economy and the region as a whole,” said Bruce Wilcox, President and CEO, Greater Paducah Economic Development. “Existing businesses gain a valuable tool to reduce costs and expand operations, while new industry has one more compelling reason to take a serious look at West Kentucky.”

PRCO America, Inc. produces refractory bricks specially crafted for high-temperature applications in the iron and steel industry and other specialty production markets. They employ approximately 90 people in the United States, 66 of whom work at the Hickory, Kentucky manufacturing facility. 

PRCO imports 1-ton supersacks of fused magnesia from China, a critical ingredient in the production of refractory bricks. The magnesia arrives at the Port of New Orleans by bulk steamship then travels upriver by covered barge to Paducah, where it is stored in FTZ-designated warehouses until it is needed at the Hickory plant.