Nucor Picks Louisiana for New DRI Plant
Nucor Corp., has selected St. James Parish, La., for the site of its planned $750 million iron making facility. The new facility will be owned and operated by Nucor Steel Louisiana, LLC, a wholly owned indirect subsidiary of Nucor.
Over the past several years, Nucor evaluated multiple sites both in the U.S. and abroad. The company says it selected the St. James Parish site for many reasons, including a capable work force and the commitment of state and local officials to this project.
"This facility will create good jobs for American workers and, at the same time, it will help Nucor achieve our long-term goal of increasing control over our raw materials supply," says Nucor Chairman and CEO Daniel R. DiMicco.
"This is a huge win for our state and will ultimately be one of the largest industrial projects in Louisiana history,” says Governor Bobby Jindal.
The 2.5 million-tons-per-year iron making facility will use direct reduction technology to convert natural gas and iron ore pellets into high-quality direct reduced iron used by Nucor's steel mills, along with recycled scrap, to produce numerous products such as sheet, plate and special bar quality steel. The DRI facility is the first phase of a multi-phase plan that may include an additional DRI facility, coke plant, blast furnace, pellet plant and steel mill.
Nucor officials say the DRI facility was chosen for the first phase of the project, in place of a blast furnace and coke making facility, because it offers a carbon footprint that is one-third of that for the coke oven/blast furnace route for the same volume of product, but at less than half the capital cost. Additionally, while acknowledging there is some loss in the value-in-use that will occur from using DRI at the steel plant rather than pig iron, the technology improvements the company has introduced at its Trinidad and Tobago DRI plant have significantly reduced that typical penalty, officials claim.