In a blow to the local economy, Aspen Aerogels announced Thursday morning that it is halting construction of its planned second aerogel manufacturing facility in Statesboro. Aspen Aerogels CEO Donald R. Young made the announcement during an investor call Thursday morning, February 13, 2025.
The company will explore options to leverage its Statesboro assets, including potentially relocating some equipment to its existing plant for upgrades and expansion. To meet future aerogel demand, Aspen will focus on maximizing capacity at its East Providence facility and implementing a flexible supply strategy.
This news, while disappointing, wasn't entirely unexpected. The announcement comes nearly three years after Aspen unveiled plans for a $325 million, 500,000 square foot facility in the Bruce Yawn Industrial Park, promising 250 jobs.
Aspen's decision to build in Statesboro came three months before Hyundai announced the construction of the Meta Plant in Bryan County, though the two projects were not connected. Since then, the project has faced numerous challenges, with the company even announcing a “right-timing” of construction in 2023.
"In early 2023, pre-empting a reset in EV demand expectations, we decided to right-time the construction of our planned second aerogel manufacturing facility in Statesboro, Georgia and subsequently ramped up our external manufacturing capacity for our Energy Industrial business,” said Ricardo C. Rodriguez, Chief Financial Officer and Treasurer, Aspen Aerogels, during Thursday’s call.
Hopes were briefly rekindled late last year when Aspen announced a conditional commitment from the U.S. Department of Energy for a proposed loan of up to $670.6 million for a planned facility in Register, Georgia. However, this latest announcement dashes those hopes for the Statesboro project.
The decision leaves questions about the future of the site and the impact on Bulloch County. Benjy Thompson, CEO of the Development Authority of Bulloch County, addressed the situation:
"Businesses often reevaluate their strategies. We are certainly disappointed that Aspen Aerogels has indicated it will cease construction of the planned advanced manufacturing facility in Bulloch County. Taxpayer protection is a priority, and should the project not move forward any further, clawback provisions are in place to recoup the local investment. Moving forward, the Development Authority, our local and state partners, along with those who make economic development projects possible, will continue to pursue long-term projects that bring good jobs, smart investment, and economic opportunities to the citizens of Bulloch County," Thompson stated.
This is a developing story. Grice Connect will continue to provide updates as more information becomes available.