Nucor mulls expansion to new DRI plant

At a dedication of Nucor’s Louisiana DRI plant Monday, Governor Bobby Jindal said the company expects to decide by the end of 2015 whether to build four additional phases that would increase its investment in the facility to $3.4 billion ($750 million has already been spent).

If Nucor decides to go forward, full-time employment could expand to 1,250, and the additional phases would include construction of a second DRI facility for $400 million; a $500 million pellet plant; a $1 billion blast furnace and $750 million steel mill.

To secure the future investments, Louisiana’s economic development department offered an incentive package to Nucor, including performance-based financial assistance that totals $160 million over about six years. However, all the incentives are dependent on all five phases starting as scheduled in the company’s agreement with the state. Nucor also is using a federal Gulf Opportunity Zone bond allocation of $600 million.