CR Machine Shop, located in Madisonville, Hopkins County, closed when its former owner retired. Alliance acquired the assets of the company in August.
Fourteen jobs will be created with the reopening, according to local media outlets.
“This venture will allow both Alliance and CR Machine Shop to continue a successful yearslong relationship and support both the mining and construction sectors,” said Kentucky Gov. Matt Bevin.
Kentucky Business Investment program earmark has given the shop up to $200,000 in tax incentives over a 10-year term.
Alliance Vice President of Operations Heath Lovell told local newspaper The Messenger that low-cost energy needs to be available in order to be competitive on a global stage. Coal will make that happen, he added.
“As we’ve seen our revenue cut from utilities, we’ve had to find ways we can lower our production costs. One way to do that is by making more parts in-house. We rebuild an enormous amount of equipment. With this machine shop, we’re going to be able to start rebuilding more of our own equipment and making our own parts. We think that’s a cost savings that is going to let us remain competitive even as our revenue decreases.”
Kentucky-based Alliance currently has 10 mining facilities in five states.