Share
Case Studies
Nucor

Thanks to the state's customized solutions and expedited permitting process, Nucor completes Phase 1, commences operations at its direct reduced iron facility in St. James Parish

Nucor

Major U.S. steel producer seeks location for mega site

Founded in 1940, Nucor produces more U.S. steel than any other company and maintains a commitment to high-quality, profitable steel products. To capitalize on its lead and advance its competitive advantage, Nucor planned a multi-phased iron and steel project and began evaluation potential sites in 2006.

Nucor's plans included a direct reduced iron (DRI) facility, which uses direct reduction technology to convert natural gas and iron ore pellets into high-quality DRI — the raw material used by Nucor's steel mills. The planned DRI facility would have an annual output of 2.5 million tons of iron. 

"Nucor would build one of the most modern iron-making facilities in the world…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 Dan DiMicco, CEO (2000-2012). "At the same time, this project would help Nucor achieve our long-term goal of increasing control over our raw materials supply."

As the company officials searched for a site and an environmentally-sound way to boost its raw material supply, Nucor officials required that the location feature a strong business environment with competitive costs and the infrastructural support to maintain the company's market edge. Company officials also anticipated a long permitting process to get the project started and looked for support to expedite this process as much as possible. Additionally, the company needed commitments from state officials to provide assistance in identifying a capable workforce.

LED develops solutions for Nucor

When Nucor officials began evaluating U.S. and international sites, they identified several promising locations, including one in St. James Parish near the town of Convent. The site in St. James was ideally located on the Mississippi River with access to ports.

To secure the location in St. James, Nucor executives reached out to LED officials, who immediately began compiling customized solutions to address the company's needs. After meeting with DiMicco and other Nucor executives, LED officials traveled to South Carolina to tour a Nucor facility to gain a thorough understanding of the company's processes and requirements.

After visiting the plant and meeting with company leadership to understand the scope of the project, LED officials met with officials from Louisiana's Department of Environmental Quality to address the company's permitting needs in an effective manner. Louisiana has developed an expedited environmental permit processing program that enables the state to issue permits in a more expeditious manner than just about any other state in the country.

With a better understanding of what was required of a Nucor workforce, Louisiana offered Nucor the services of LED FastStart® — ranked the No. 1 workforce recruitment and training program in the nation. FastStart would assist in identifying the right talent and preparing them for the modern equipment planned for the facility.

Louisiana offered Nucor a $30 million performance-based grant and a $30 million bond supported by lease payments from the company for the DRI facility. The company's plans for a new facility left much room for expansion, and when those plans are realized, the bonds will convert into a performance-based grant for the next phase.

LED's partners at the local level also supported Nucor's investment. Through local government, Nucor received an extended tax exemption of 20 years, making an annual payment in lieu of taxes to support the local school system, parish government and sheriff's office. Nucor will also utilize the state's Quality Jobs program.

Nucor solidifies deal for major development in St. James Parish

In September 2010, Nucor agreed to the provisions in its deal with Louisiana and announced the selection of St. James Parish for its project. In March 2011, state and local leaders joined Nucor executives to break ground on the DRI facility.

The DRI facility is the first phase of Nucor's new multiphase iron and steel manufacturing facility. 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).

The DRI facility will employ 150 people upon its expected completion in mid-2013. The iron produced at the facility combines with recycled scrap at Nucor's steel mills to make high-quality steel products, such as sheet, plate and special bar-quality steel. By selecting the DRI technology for this project over blast furnace and coke-making machinery, Nucor will produce one-third less carbon emissions, and save more than half the costs affiliated with alternative methods.

Louisiana stepped in to support Nucor with its hiring needs, and LED FastStart created a custom web portal to coordinate the latest activities with the company, including posting current available jobs and distributing the dates and locations of Job Information Sessions. Hiring for the DRI facility began in November 2012.

The FastStart team developed a customized Interactive Training Module (ITM) to train new employees on the Material Handling Process Flow of the Nucor Steel Louisiana facility. Additionally, FastStart developed training procedures for Project Overview instructors, safety methods, basic maintenance, core skills and job specific training.

Related Incentive

Quality Jobs

Provides rebate on annual payroll expenses and either a 4% sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5% of qualifying expenses.

Key Industry

Manufacturing

A favorable income tax and strong infrastructure provide the resources companies need to thrive in Louisiana.

Stay Connected

Stay Connected

Email Sign-upEmail Sign-up

Sign up to receive the latest updates, news releases and info on new opportunities in Louisiana.

Sign UpSign Up

Economic Quarterly

Learn more about Louisiana's thriving economy.

Read EQ

Recent News

View All News