CONVENT, La. -- Today, Gov. Bobby Jindal and Nucor Corp. (NYSE:
NUE) Chairman, President and CEO Dan DiMicco joined Louisiana
Economic Development Secretary Stephen Moret and St. James Parish
President Dale Hymel to break ground on the first phase of Nucor's
new multiphase iron and steel manufacturing facility in St. James
Parish.
The facility will be one of the largest industrial projects in
Louisiana history, and could result in more than 1,250 new direct
jobs, averaging approximately $75,000 per year, plus benefits, and
$3.4 billion in capital investment.
"After working for three years to attract Nucor to Louisiana, I
am thrilled to join Nucor CEO Dan DiMicco and local officials to
break ground on the first phase of this huge new job-creating
project," said Gov. Jindal. "Nucor's decision to come to Louisiana
instead of anywhere else in the nation or the world is a tremendous
victory for Louisianans and sends yet another signal that our state
is the best place for businesses to locate, grow and succeed. We
are competing for the best businesses in the world. We have already
announced project wins creating more than 39,500 new jobs since
taking office, and the Nucor project will be a tremendous economic
boost for Southeast Louisiana and our entire state for years to
come."
"We are excited to be getting our DRI project underway and to
bring good manufacturing jobs to Southeast Louisiana," said
DiMicco. "Manufacturing has long been the cornerstone of the
American economy, and we feel that it will once again lead our
country back to economic prosperity. America is a place where we
make and build things, and the partnership we have formed between
the state and Nucor is a testament to the hard work of Gov. Jindal,
Secretary Moret, Parish President Hymel and other local officials
and residents, all of whom have supported and championed this
project."
The five phases of the project described in an incentive
agreement with the state include a direct reduced iron (DRI)
facility (150 jobs and $750 million capital investment) in Phase I;
a second DRI facility (100 jobs and $400 million capital
investment); a pellet plant (200 jobs and $500 million capital
investment); a blast furnace and coke ovens (300 jobs and $1
billion capital investment); and a steel mill (500 jobs and $750
million capital investment).
Phase I of the project, a 2.5 million tons-per-year iron-making
facility, will use direct reduction technology to convert natural
gas and iron ore pellets into high-quality DRI used by Nucor's
steel mills. The iron that is produced is used, along with recycled
scrap, to make high-quality steel products, such as sheet, plate
and special bar quality steel. Nucor estimates Phase I alone will
create 500 jobs during peak construction.
The cooperative endeavor agreement, or CEA, between the state
and Nucor allows the company to select the order of execution of
the remaining four phases of the project; however, all four phases
must be initiated by 2015 in order for the company to receive the
full value of the incentive package proposed by LED. If all phases
are executed according to Nucor's CEA with LED, peak employment of
approximately 1,250 direct jobs is expected by 2019.
To secure the project, LED offered a customized incentive
package to Nucor, including performance-based financial assistance
that totals $160 million over approximately six years provided that
all five project phases are initiated as scheduled in the company's
CEA with LED. Nucor also is utilizing a Gulf Opportunity Zone bond
allocation of $600 million, and will utilize the state's Quality
Jobs Program.
An economic-impact analysis developed by Louisiana State
University indicates the project, if executed as scheduled in the
CEA, will generate approximately $563.5 million in new, state tax
revenues, as well as $122.6 million in St. James Parish revenues
over the life of the CEA, which is structured to run through 2033.
Additionally, LSU's analysis indicates about 4,800 indirect jobs
will be created by 2019, resulting in a total of more than 6,000
new direct and indirect jobs provided that the company meets all of
the benchmarks in the CEA.
"In terms of capital investment, jobs, tax revenues and the
overall signal it sends about Louisiana's economic momentum,
Nucor's project is one of the most significant wins in our state's
history," said Moret. "After three years of aggressive recruitment
efforts, we are excited to see this project finally set to move
forward. It will generate a tremendous economic impact for St.
James Parish, Southeast Louisiana and our entire state for many
years to come."
"The parish has worked diligently with the state and with Nucor
to make certain this agreement carried out according to plan,
finally after two long years, Nucor is now officially a part of St.
James Parish," said Hymel. "As a community, we cannot measure how
great of an opportunity this is for both St. James Parish and
Louisiana. One of my goals has always been to attract more
businesses and new development to St. James Parish to increase
parish growth. This is part of our immediate plan that will provide
more opportunities and jobs for our residents into the future.
Thank you to all the entities that came together, including the
residents for showing their support in welcoming Nucor to St. James
Parish. This can only have a positive and beneficial effect on the
future of St. James Parish."
During the site selection process, Nucor evaluated several sites
in the U.S. and abroad, and Gov. Jindal met with DiMicco and other
Nucor executives several times to promote Louisiana as the best
site for the project. In September 2011, Nucor selected Louisiana
based on several factors including the state's workforce,
competitive operating environment, and recent efforts by the state
to eliminate business taxes that would have negatively impacted
Nucor's competitiveness in Louisiana.
Learn more about Nucor at Nucor.com.
