Nucor bond deal gets state approval

A key financing element of steelmaker Nucor’s plans to build up to a $3.5 billion iron plant in St. James Parish has received preliminary state approval. The State Bond Commission agreed today to let Nucor use $600 million in tax-free hurricane recovery bonds for construction costs. The application will need one more approval from the commission, after its staff reviews the details, before the bonds can be sold. The Nucor project, to be built in five phases, is one of the largest industrial development projects in Louisiana history. The first phase of the project is a $750 million direct reduced iron facility that will create 150 jobs. Future phases, according to Nucor, will include a second DRI facility, a pig iron blast furnace, coke ovens and, ultimately, a steel mill itself. If all five phases are completed, that will eventually mean 1,250 jobs for the state and a $3.4 billion in capital investment from Nucor. Construction on the first phase is set to begin as soon as the necessary environmental permits are issued.