|
Landrieu, Melancon Welcome Potential Steel Mill to St. James Parish |
Mill would generate $2+billion investment; 500 permanent, high-wage jobs; 2,000 construction jobs
May 15, 2008
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 workers 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.
# # #
|
Issues & Legislation 