THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, July 13, 1994 TAG: 9407130537
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: By PHIL MURRAY, STAFF WRITER
LENGTH: Medium: 55 lines
Nucor Corp. has narrowed its search for a site to build a $500 million sheet-steel mill to two locations in eastern Virginia and one in the Charleston area of South Carolina, Nucor's chairman said Tuesday.
The minimill, which is expected to employ about 600 people in mostly high-wage jobs, would represent a major economic development coup for the state that lands the fast-growing steel-maker.
Nucor Chairman F. Kenneth Iverson identified the two areas under consideration in Virginia as a site on the north side of the James River between Newport News and Richmond, and a site in the West Point area. For the James River site, that would mean either Charles City or James City county.
In South Carolina, Nucor is looking at property about 25 miles outside of Charleston, he said. The project will require about 600 acres.
Charlotte-based Nucor, which is expected to rank as the fourth-largest U.S. steel-maker by the end of the year, is rapidly expanding its production of sheet steel used in automaking and other industries.
Iverson said the company is negotiating with property owners for options to buy land - a process that comes near the end of a site-selection search. He said Nucor likely will secure options at one location in each state. Then it will depend on where Nucor can strike the best deal.
Iverson has said the price of electricity, transportation and state incentives will play a role in the company's choice. Once a decision is made, Iverson said it would take about two years to get the plant operating.
Economic development officials in Charles City, James City and Virginia state government all declined comment on the prospect of Nucor building a mill on the edge of the Hampton Roads area.
``It's a confidential issue right now,'' said William Britton, Charles City County's planning director.
Nucor, with sales of $2.2 billion in 1993, has taken business from big, integrated steel mills by building more efficient ``minimills.''
The minimill planned for the Southeast would be Nucor's third sheet steel plant. The company is in the process of doubling capacity at its two other sheet steel plants in Crawfordsville, Ind., and Hickman, Ark. The plants turn scrap metal into sheet steel.
Nucor employs nearly 6,000 people, many at plants in nonunion, rural areas. Workers receive a base pay plus incentives linked to production and profitability. A typical worker in the melt shop can make more than $40,000 per year. ILLUSTRATION: Graphic
STEEL GIANT IN VIRGNIIA?
[For complete graphic, please see microfilm]
by CNB