Will Louisiana Land Nucor?

Will Louisiana land Nucor Corporation? Ever since its announcement on Thursday, the public relations mill has been churning from Nucor to the Bobby Jindal’s Governor’s Office, to US Senator Mary Landrieu to House Rep. Charles Melancon. Which means that everyone wants to get some credit for the “potential” landing of a major project. The problem occurs if the project does not hit home. Then, there is nothing but “egg “ on the faces of those who could not bring home the bacon. So, with all the sizzle, we will only know at the end-of-the-day but this is the time for all governmental agencies to get heavily involved in making Nucor Louisiana, a reality.

The following is a press release from Nucor that has been circulated by the Office of Governor Bobby Jindal. Following are statements from Landrieu and Melancon:

From Nucor Corporation

Nucor Corporation announced today that the company has applied for a permit to build a state-of-the-art iron-making facility in St. James Parish, Louisiana. The new company would be called "Nucor Steel Louisiana."

Over the past two years, Nucor has evaluated multiple sites both in the U.S. and abroad. In its analysis, Nucor considered many factors, including the features of each site, transportation, permitting, the commitment of the State's leadership to the project and the proposed incentive packages. The competitiveness of Louisiana's proposed incentive package, including significant infrastructure improvements, and the State's ability to move quickly were very important in the analysis. After taking into account all of these factors, the only U.S. site still under consideration is a large site on the Mississippi River in St. James Parish, Louisiana. Sites outside of the U.S. are still under active consideration.

The project is not a certainty. Regardless of the ultimate site chosen for the project, permits have to be issued and Nucor's board must approve the selection of the site and the capital investment. If the project is ultimately built in the U.S., it would be the first greenfield pig iron facility built here in more than 30 years.

"Nucor would build one of the most modern iron making facilities in the world to produce 3,000,000 tons of pig iron, employing the latest technologies to reduce emissions. This facility would create hundreds of good jobs for American workers and demonstrate the effectiveness of new technology to protect the environment," said Nucor Chairman and CEO Daniel R. DiMicco. "At the same time, this project would help Nucor achieve our long-term goal of increasing control over our raw materials supply."

"We are proud that Nucor, a company with a great reputation for creating jobs in the U.S., is considering Louisiana for this important project," Louisiana Governor Bobby Jindal said. "This would provide a tremendous boost to Louisiana's economic development and further job creation. We will continue to work with local communities here to attract a facility that can become a national model for responsible manufacturing and economic growth."

Nucor has selected advanced heat-recovery coke technology to be used in this facility. Unlike conventional coke facilities, this coke plant would capture waste heat and use it to produce power, making our operation self-sufficient in power. The coke-making facility will meet and likely outperform current best-available control technology requirements.

Nucor's blast furnaces will have the latest designs for emissions controls and energy efficiency. This facility would capture waste energy from the blast furnaces to produce power over and above our own requirements. By the second phase of this project, the facility would be producing 500 MW of power, of which 250 MW would be supplied to the grid, completely offsetting the emissions that would have been released had a facility been constructed to generate this new source of power.

The facility will have slag granulation technology that produces a valuable by-product used by the cement industry, completely offsetting the emissions they would have created to manufacture the same product.

If the project is located in St. James Parish, Nucor would build a new high-capacity port on the river capable of handling ocean vessels, as well as barges of coal and pig iron. This project would create a lot of jobs and stimulate the economy. The project's first phase would require a $2 billion investment and would directly create 2,000 jobs during peak construction. Five hundred permanent Nucor jobs would be created, earning an average annual salary of $75,000, plus benefits; roughly twice the area's median household income.

If the second phase is built, Nucor would invest an additional $1 billion for a second 3,000,000-ton blast furnace and increase permanent employment to 750.

There would be a huge economic impact generated by businesses and services that support this type of facility. Approximately 2,600 permanent jobs would be created by suppliers and businesses that either move into the area or expand in order to support the first phase of Nucor's operation. It's estimated that St. James Parish would earn an additional $3.3 million annually in sales tax receipts and new business sales in the Parish would rise by almost $1.2 billion annually from phase one alone.

Headquartered in Charlotte, N.C., Nucor makes more steel in America than any other company. Nucor and its affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Nucor prides itself on its environmental reputation, workforce policies and commitment to its communities. According to the U.S. EPA, the domestic steel industry including Nucor produces more steel today than it did in 1990, but does so with about 40% less carbon dioxide emissions, far outpacing the Kyoto Protocol goals. No other industry can claim such results and Nucor is a big part of that accomplishment. The company is also a member of the U.S. Green Building Council and has participated in other elite environmental programs, such as the Environmental Protection Agency's National Environmental Performance Track program and the U.S. Government's voluntary Climate VISION program.

In addition to the community activities of each individual Nucor division, the Nucor Foundation has donated more than $43.5 million toward scholarships for our employees' children since 1974 -- $3.6 million in 2007 alone.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2007 Annual Report on Form 10-K. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.”

From US Senator Mary Landrieu

WASHINGTON – United States Senator Mary L. Landrieu, D-La., and Congressman Charlie Melancon, D-La., today announced that steel-maker Nucor Corporation has applied for the necessary permits to build the first U.S. raw materials mill in 30 years in St. James Parish.

“It is great news for all of Louisiana that Nucor has focused its attention on our community to build this mill, jumpstarting our economy as we continue our recovery from the 2005 hurricanes.” Sen. Landrieu said. “Nucor is making a smart decision in seeking to produce raw steel here on U.S. soil. We will be able to ensure efficient, more environmentally sound production and stabilize costs as well as quality. The mill will provide American jobs at a time when so many of our manufacturing jobs have moved overseas, and producing domestically strengthens our national security in ways already demonstrated by Louisiana’s energy sector.

“Nucor’s promised commitment to the St. James Parish school system is also very welcome news. The company’s investment in the future of our youth would not only be good community, it would also be good for business. With this base of educated labor supported by generous employee benefits, Nucor is poised to be a welcome corporate citizen of Louisiana.”

“Nucor’s huge potential investment in St. James will ring throughout our Southern Louisiana economy,” Rep. Melancon said. “These days it is rare that a new industrial plant is built from the ground up, so the construction jobs alone would be a real shot in the arm for the community. I’m very pleased that Nucor has committed to partner with our schools to help develop the skills our students will need to face the modern economy.”

Pending necessary permit and legislative approvals, the Nucor mill is expected to generate 500 permanent jobs paying an average of $75,000 a year, with 70 to 80 percent of workers hired locally. Additional employee benefits include $3,000 a year for workers’ children to go to college, and the company intends to invest $850,000 annually in the local school board to enhance workforce education.

According to Nucor’s application, the mill will be built on the banks of the Mississippi River near Convent, La. It is on the same site that German steel manufacturer ThyssenKrupp AG considered last year. Nucor worked with former Governor Kathleen Blanco and Governor Bobby Jindal on its decision to come to St. James Parish, and would be building on an even bigger footprint than ThyssenKrupp was planning. The company’s plan is to produce raw material steel known as “pig iron,” normally imported from China, Russia or Brazil. The company also plans to build a port facility at the site to transport the material to finishing plants nationwide.

Sen. Landrieu and Rep. Melancon have long championed economic investment in the parish, and are committed to boosting South Louisiana’s economic recovery from the 2005 hurricanes. Sen. Landrieu recently included language in a Senate-passed housing bill to give Gulf Coast businesses greater flexibility to take advantage of increased bonus depreciation for construction of commercial properties and residential rental properties. The provision means about $308 million in tax benefits to Gulf Coast businesses and residential development. Both Sen. Landrieu and Rep. Melancon are working to ensure this language remains in the bill following Senate and House negotiations.

The Nucor project, as currently envisioned, is expected to generate 2,000 near-term construction jobs and an estimated 2,600 additional jobs in the community to support the mill and its workers. Nucor also has a mill in Arkansas, which according to one academic study, created an 8 to 1 “job ripple effect” in the wider community – for each Nucor worker employed, eight jobs were born in the local economy. If Nucor moves on to a second phase of development, the company would invest an additional $1 billion in the mill, and create another 250 permanent jobs for a total of 750.

Nucor employs 20,000 in 21 states and is on the BusinessWeek 50, which ranks top performing companies based on the return on investment and sales. It is headquartered in Charlotte, North Carolina.

From Congressman Charles Melancon

WASHINGTON – United States Senator Mary L. Landrieu, D-La., and Congressman Charlie Melancon, D-La., today announced that steel-maker Nucor Corporation has applied for the necessary permits to build the first U.S. raw materials mill in 30 years in St. James Parish.

Nucor employs 20,000 in 21 states and is on the BusinessWeek 50, which ranks top performing companies based on the return on investment and sales. It is headquartered in Charlotte, North Carolina.

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