DEQ issues Nucor first phase permit

The Louisiana Department of Environmental Quality issued the air quality construction and operating permit for Nucor Corp.’s direct reduced iron facility, Gov. Bobby Jindal announced Thursday in a release.

The construction 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.

“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,” Jindal said.

Major activity should start at the site in the near future as hundreds of construction jobs are created to build the facility in coming months, the Governor said.

The Nucor project was also one of the largest industrial projects announced in the U.S. last year. Jindal said the official groundbreaking ceremony with Nucor, state and local officials is expected in the next few weeks.

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, 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.

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.