Representatives from aluminum rolling and recycling firm Novelis Inc. and local, state, and federal officials gathered for a groundbreaking ceremony on Monday in Guthrie, KY to mark the beginning of construction on a new $300 million aluminum processing plant, a company press release announced.

The 400,000-sq-ft automotive aluminum sheet production facility has a planned annual capacity of 200,000 MT when operations commence at the Kentucky site in 2020. Novelis’ move to the 150-acre site is expected to create 125 new jobs.

“The increased adoption of aluminum in cars, trucks, and SUVs, coupled with more automotive manufacturing plants in the southeast makes Guthrie a strategic location to serve our customers,” Novelis’ Chief Executive Officer and President Steve Fisher said in a statement.

Aside from Guthrie’s geographic strengths, the company said recent reforms in federal corporate tax law also contributed to the decision to build the new facility.

“A favorable economic environment has enabled Novelis to recently finalize key contracts totaling $60 million for engineering plans, site preparation, and state-of-the-art equipment for the greenfield facility,” the company’s release said. “The facility will include heat treatment and pre-treatment lines, which prepare aluminum for use in vehicle parts such as body-in-white, hoods, doors, lift gates, and fenders.”

The world’s biggest recycling firm for aluminum, Novelis’ network includes 24 rolling and recycling sites across 10 countries, according to a press release issued by Kentucky Gov. Matt Bevin’s office.