Financing plans for Charlotte, North Carolina-based Nucor Corp.'s proposed plant in St. James Parish, Louisiana was approved Thursday by state officials, giving the project all the state incentives promised to commence with the first phase of construction for a $750 million direct reduced iron (DRI) facility.
The State Bond Commission gave Nucor $30 million from Louisiana's state construction budget and agreed to allow the company use $600 million in tax-free hurricane recovery bonds for construction costs through the Gulf Opportunity Zone program.
If Nucor goes through with all the planned phases of the operation, it would be one of Louisiana's biggest industrial deals ever, totaling $3.4 billion and creating up to 1,250 jobs in the process.
Before it can begin construction on the project however, Nucor must modify its state air and water quality permits; company officials said in their Q3 conference call Thursday that they hope to have the permit changes by the end of the year and then expect it will take two additional years before the first facility is running.
Louisiana Governor Bobby Jindal's administration cut millions of dollars in legislators' favored projects in order to pull together the $30 million, after making the proposal last Thursday, October 14, to the Bond Commission.
Among the projects sidelined to make room for Nucor was a training academy for state police, a new dormitory at LSU's fire and emergency training institute and road work.
The Bond Commission also approved the use of GO Zone bonds, which are given a special borrowing status so businesses can borrow money for a lesser amount, for the Nucor project.