Nucor hits construction, hiring milestones

Published 12:00 am Saturday, October 20, 2012

By ROBIN SHANNON

L’Observateur

VACHERIE – The St. James Parish Council on Wednesday were briefed on some major milestones that have been met in the construction and staffing of Nucor Corp.’s direct-reduced iron plant in Convent.

Les Hart, general manager for Nucor Steel Louisiana offered some insight to council members during a presentation on economic development at Wednesday’s meeting. The council was also informed of other economic development gains in the parish over the past year.

Hart said the company has completed its hiring for the first phase of the project, and it is now set to begin hiring next week for the second phase of its proposed $3.4 billion steel manufacturing facility.

On the construction front, Hart said that in the past week or so, storage domes at the site have been inflated for the storage of iron ore. He said the domes are still undergoing some internal construction. In addition, Hart said contractors have also set a massive furnace vessel into place, a major component of the $750 million direct-reduced iron facility currently under construction.

“The component came to us from Texas via the river system,” Hart said. “The team was able to set up and complete the structure in just seven days, which was a major undertaking.”

Hart said the DRI plant is expected to bring in 150 permanent jobs by the end of 2012. He said there are about 644 contractors on-site, with more than 30 percent being local hires from Louisiana and the River Parishes.

The proposed five-phase steel facility, which includes construction of another DRI facility, a pellet plant, a blast furnace and a steel mill, is expected to produce 1,250 permanent jobs, according to Nucor officials. The project is being constructed on a 4,000-acre site on the east bank of the parish.

Hart said Nucor is ending its first round of employee training and will start hiring Monday for the project’s second phase of construction. This second round of hiring will bring the total number of employees for the first phase to 150, Hart said. Applicants can go to www.nucorjobslouisiana.com, he said.

Hart said the DRI plant is still looking to start up in mid-2013.

St. James Parish President Timmy Roussel asked Hart about Nucor’s potential interest in purchasing a struggling steel mill in Calvert, Ala., owned by ThyssenKrup and if it will affect Nucor’s plans in Convent.

Hart said Nucor is just one of a handful of companies looking at the Alabama steel mill, but he said what happens with the sale is outside of Nucor’s plans for Louisiana.

“The decisions that we make are made to enhance ourselves and our existing operations so we can better serve our company and communities where we live and work,” Hart said.

Outside of the Nucor update, the council also learned of growth in the parish’s tax base. Steve Nosacka an Economic Development Department consultant, said sales and use taxes reached $26 million in 2011 and added that 2012 is tracking at 15 to 16 percent higher. The parish also collected some $55 million in property taxes in 2012 thanks to increased values of inventories at some of the industrial plants in the parish.

Nosacka also said the parish’s top 10 taxpayers make up about 55 percent of the tax revenue collected by the parish, putting the remainder of taxpayers at about 45 percent.

“We are not as dependent on the top 10 taxpayers as we once were in St. James,” Nosacka said. “That is a good sign of growth across the board.”