from a release out of Louisiana Gov. Bobby Jindal’s office today…
Governor Jindal announced today that the Louisiana Department of Environmental Quality issued the air quality construction and operating permit for Nucor Corp.’s direct reduced iron (DRI) facility, which is the first phase of a multiphase project that could create up to 1,250 direct jobs and $3.4 billion in capital investment, with an average salary for workers of $75,000, plus benefits.
Governor Jindal said, “With the DEQ permit issued today, Nucor plans to begin construction immediately on their project in St. James Parish, which will be one of the largest industrial projects in Louisiana history. We look forward to seeing major activity starting at the site in the near future, as hundreds of construction jobs are created to build the facility over the coming months. This is an incredible economic win for St. James Parish and our entire state. The Nucor project was also one of the largest industrial projects announced in the U.S. last year.
“Louisiana’s economy has outperformed the South and U.S., both during and after the recent national recession. We have already announced projects that are creating more than 39,500 new direct and indirect jobs, as well as $8.5 billion in new capital investment, since taking office in 2008. The Nucor project, specifically, will be a tremendous boost for Southeast Louisiana and our entire state for years to come. We expect to announce an official groundbreaking ceremony with Nucor and state and local officials in the next few weeks.”
Nucor Corp. Chairman, President and CEO Dan DiMicco said, “The Nucor Team is excited to be part of the St. James Parish community in Louisiana and bring in the type of high paying jobs that will help make us an integral part of this community. We appreciate all of the help and support that Governor Jindal and all of the other state and local agencies have given us to help this process come to fruition. We are very excited that we will be able to begin moving forward with the construction of this facility. Our nation’s economy needs capital investment projects like this that stimulate job growth and contribute to a sustainable economic recovery.”
DEQ Secretary Peggy Hatch said, “This is a tremendous occasion because of all the effort that went into reviewing and issuing this permit. For a facility of this size, it was important that the state work in a timely fashion to review the permit and to ensure that air emissions will be protective of human health and the environment. The facility will be an economic boon while not creating any adverse environmental impacts. Nucor has instituted some of the most modern, state-of-the art environmental processes to ensure compliance with stringent environmental regulation.”
Louisiana Economic Development Secretary Stephen Moret said, “We will begin to see significant activity at the site in the next few weeks, and work will accelerate and expand through 2011. Major business development wins like Nucor have represented one of the top reasons why Louisiana’s economy continues to outperform the South and U.S.”
Over the past few years, Nucor evaluated several sites in the U.S. and abroad while deciding where to locate the project. Since taking office in 2008, Gov. Jindal worked with Nucor executives to promote Louisiana as the best site for the project, and met with Nucor Chairman, President and CEO Daniel R. DiMicco and other Nucor executives many times. In July 2008, Gov. Jindal traveled to South Carolina to meet with Nucor executives and tour one of the company’s facilities.
The five phases of the project described in the CEA with the state include a direct reduced iron (DRI) facility (150 jobs and $750 million capital investment), which is the first phase of the project; 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). Nucor estimates that phase one alone will create 500 jobs during peak construction.
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 new, local tax 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 the company meets all of the benchmarks in the CEA required to receive the full incentive package.