Beebe announces $1.1 billion steel mill
This article was originally published January 29, 2013 at 10:30 a.m. Updated January 29, 2013 at 1:58 p.m.
PHOTO BY GAVIN LESNICK
Gov. Mike Beebe announced Tuesday, Jan. 29, 2013, that a $1 billion steel mill is planned for Mississippi County.
- Comments (25)
- aAFont Size
Officials react to superproject announcement
The mayor of Osceola, the Mississippi County judge, House Speaker Davy Carter and Arkansas Economic ...
LITTLE ROCK — A $1.1 billion steel mill that will create hundreds of high-paying jobs is planned for Mississippi County, officials announced Tuesday.
Gov. Mike Beebe unveiled details of the "superproject" Tuesday morning, joining state leaders, economic development officials and company executives to announce The Big River Steel plant is coming to Osceola. The facility, which could begin construction as early as August, will create 525 jobs with an average salary of $75,000 as well as about 2,000 construction jobs, Beebe said.
Beebe said suppliers and customers are expected to create even more jobs in the region.
"And so it's a pretty big deal to put in a vernacular of my son," he said. "It's a pretty big deal."
The deal has been preliminarily reached, but still must be approved by the legislature. It is contingent on lawmakers approving a $125 million bond issue that includes a $50 million loan.
Big Steel Chief Executive Officer John Correnti said the utilities in the area coupled with its proximity to the Mississippi River, railroads and interstate makes it ideal.
"This site, if you go see it, it's steel mill heaven," he said.
Big River will produce steel for the automotive, oil and gas, and electric energy industries, and mill construction will take about 20 months after the groundbreaking, the company said in a statement.
Correnti said the economic impact would be felt immediately. He said a previous investment elsewhere spurred a 17.2 percent increase in the city's sales-tax receipts on the first day of construction.
"It's amazing what 2,000 construction workers can do," he said with a smile. "They eat a lot and drink a lot of beer."
Osceola Mayor Dickie Kennemore said other companies with superproject-level interests have looked at his city and region and ultimately passed. Not this time.
"This time we've won the prize," he said, noting that it would draw his "struggling" county "out of the doldrums."
"This dog has got the bone," he said.
Mississippi Coutny Judge Randy Carney called Correnti his "new best friend" and said his first response to hearing about the potential project two years ago was "wow."
"Today my response is, 'wow.'" In two years, my response is going to be, 'wow.' In 25 years, my response is going to be, 'wow,'" he said.
Beebe said he is "real confident" that the deal with go through but noted the legislative and regulatory approval are hurdles still to be cleared. Legislative leaders President Pro Tempore Michael Lamoureux and House Speaker Davy Carter appeared beside Beebe at the news conference but didn't speak during it.
Under Amendment 82, the legislature can approve up to 5 percent of the state’s general revenue for infrastructure and other costs involved with major economic development projects.
After the news conference, Carter said legislators intend to look very closely at the deal and the bond issue before voting.
"I'm bullish on the idea and the company, but we've got a long ways to go on doing our own homework and our own due diligence and going through the process," he said. "It is a lot of money and I can promise you we will take it very, very seriously in the House."
Grant Tennille, executive director of the Arkansas Economic Development Commission, said he told Carter and Lamoreux that he is "proud of this deal."
"I think once they have the time to go through it, once they perform their due diligence and their function as required by Amendement 82, that I think they're going to be proud of the deal as well," he said, "and that we will be able to turn to the rest of both bodies and say this is the right deal for the state of Arkansas."
More than 100 people crowded into Beebe's large conference room at the north end of the Capitol for the formal announcement, including Lt. Gov. Mark Darr and Attorney General Dustin McDaniel.
Beebe talked in general about the deal in his State of the State address earlier this month, calling it one of the largest economic-development projects in the state's history.
In subsequent interviews, the governor declined to go into specifics, saying final details still needed to be finalized but closing the deal would create "a bunch" of jobs. A superproject is defined as one that creates at least 500 jobs and at least $500 million in investments.
Economic-development officials told the Arkansas Democrat-Gazette on Monday that the $1 billion deal will make the project the largest single investment in Arkansas’ history.
Read tomorrow's Arkansas Democrat-Gazette for full details.
Arkansas Online reporter David Harten contributed to this story.
Comments on: Beebe announces $1.1 billion steel mill
To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.
You must login to make comments.
TheBatt says... January 29, 2013 at 11:16 a.m.
Hope this works out better than the wind mill blade mess... Lots if public funds and tax breaks... And drying up jobs.
( permalink | suggest removal )
RBBrittain says... January 29, 2013 at 11:23 a.m.
Hey, at least they can ship the windmill blades, Keystone pipeline pipe, etc. up there to make something else. (In fact, scrap steel is what the old AND new Mississippi County steel plants run on.)
( permalink | suggest removal )
Wassup says... January 29, 2013 at 11:49 a.m.
Big Steel Chief Executive Officer John Correnti: "It's amazing what 2,000 construction workers can do, They eat a lot and drink a lot of beer." Praise Jesus and thanks be to God that Mississippi Co. is "wet." How much incentive money did we have to kick in, other than the $50M construction loan?
( permalink | suggest removal )
drs01 says... January 29, 2013 at 12:28 p.m.
Maybe this new steel mill will keep or remove countless Mississippi county residents off the welfare roles. Now they have an incentive to work, maybe even buy their own healthcare insurance, pay taxes. Wow...a private company is creating jobs in Arkansas.
( permalink | suggest removal )
BillSmith says... January 29, 2013 at 12:30 p.m.
TheBatt.....expand on the wind mill mess, which one are you talking about?
( permalink | suggest removal )
Populist says... January 29, 2013 at 1:03 p.m.
An average salary of $75,000 for the jobs funded with a loan from taxpayers? I wonder what the CEO and other officers get paid. What are the terms of the loan? Do the taxpayers get paid back? Where does the other money from the bond issue go? Which bond firms and bond lawyers benefit from this bond issue? It would be nice if the state funded improvements for the schools. I always am suspicious when the government gives to private enterprise. I know that it may be necessary to help Mississippi County, and I hope this turns out well for them.
( permalink | suggest removal )
inquire says... January 29, 2013 at 1:21 p.m.
At least this money is being spent as an incentive to attract really good jobs. These people will be able to spend serious money and pay taxes. Too many times, I've seen communities spend money on bridges or road changes just to get more Walmart jobs.
( permalink | suggest removal )
GAITOR says... January 29, 2013 at 1:26 p.m.
I bet every one of the new permanent jobs at the mill are filled with folks that don't currently live in Miss County.
( permalink | suggest removal )
Populist says... January 29, 2013 at 2:27 p.m.
We do not have enough details really to know if this is a good deal or not. This is a public investment in a private enterprise. If this business is a good idea, why can't they attract private capital? What is the public's rate of return on its loan? Who are the individuals who will own this private business being financed in part by public funds? How much of the bond issue will end up in the hands of the bond salesmen and the bond lawyers? We need more details.
( permalink | suggest removal )
drs01 says... January 29, 2013 at 2:30 p.m.
Regardless of who gets what in Mississippi county, at least it's not Buddy the bridge builder pissing away $20Million for a downtown bridge to flatter his fat-ass ego.
( permalink | suggest removal )
Packman says... January 29, 2013 at 2:31 p.m.
Hey Populist - My, oh, my, how could this be? An uneducated, backward, gun-toting, religion clinging, crime-ridden state like Arkansas ATTRACTING industry? How could this be???
Hey inquire - How dare those dastardly economic development types approve INCENTIVES to Big Business to provide good jobs for countless Arkansans! How dare them! And in a right-to-work state no less! HOW DARE THEM.....
(All of the above dripping with sarcasim)
( permalink | suggest removal )
BarichMilhusseinObamaNixonPOTUS says... January 29, 2013 at 3 p.m.
Damned if we do damned if we don't. When we lost out a few years ago everyone whined and complained that we don't do enough to attract industry. Now we do and it is still not good enough. Of course at the current rate of capacity the domestic mills are running it makes you wonder whose market share they will erode. If it is Nucor (which I am sure he would love being the former Nucor exec that he is) it may not benefit Miss. County as much as expected. It will all depend on the type of steel mill this is.
( permalink | suggest removal )
Jackabbott says... January 29, 2013 at 3:25 p.m.
This is good economic news.
Frankly, the state of Arkansas needs an announcement like this once a month to pur a dent into our dismal economy. Hopefull, all the workers are not going to be illegals.
Now these governmental guys need to stop patting themselve on the back and see if they can save Hawker and the 300 plus job in LR. They can no longer sit around and do nothing like they did when Whirlpool move about 5,000 jobs from FT. Smith to Mexico and China.
( permalink | suggest removal )
inquire says... January 29, 2013 at 4:52 p.m.
Packman, drip all the smelly sarcasm you please. I did not express any objection to this deal, based on what we know now. If it offends you for me to be able to tell the difference between jobs well worth the public investment and others less so, I don't care.
( permalink | suggest removal )
cliffcarson says... January 29, 2013 at 5:23 p.m.
Some Facts:
It's not a done deal yet. Some things still have to happen.
I think it will be good for the State.
Fat cats will make money off the deal.
Middle Class Arkansans will be well served by the project.
The mill could have been shipped off to Mexico, India, or China.
China currently produces more steel than the rest of the world combined.
( permalink | suggest removal )
Populist says... January 29, 2013 at 5:28 p.m.
Packman,
This deal may be the greatest thing since sliced bread. However, there is much money at stake, and I am always queezy when the government is funding the private sector. Sometimes, it works, and sometimes it doesn't. I hope that there are some good legal and business minds looking at this deal closely with the interests of the people. I just have seen so much corruption in my life that I am always a skeptic. This is why many lawyers never make that much money; we are always skeptical about investing or taking risks.
( permalink | suggest removal )
HotSpringsLawyer says... January 29, 2013 at 6:24 p.m.
This is probably good for the state overall, though I agree you cannot tell from this supercial information. Too often, initial promises are not honored but by then the public funds are gone.
( permalink | suggest removal )
BarichMilhusseinObamaNixonPOTUS says... January 29, 2013 at 7:05 p.m.
Everyone skeptical probably needs to see what Correnti did in Columbus,MS and then decide. I have a strong feeling backed by facts this will be a very good thing for Arkansas. Actually the happiest person will probably be Tom Scheuck in LR
( permalink | suggest removal )
Got2Kids says... January 29, 2013 at 8:15 p.m.
You're not all for the government financing private sector businesses, but have no problem with the perpetual expansion of government financed individuals? Talk about a hypocritical position. Also, the boss always makes more money than the employee. Guess "ya'll" want the company run by the line employee at line employee wages. How stupid can you be? Gripe about a business, celebrate "free" payments for having kids and not working. Dumb, very dumb.
( permalink | suggest removal )
Ninememo says... January 29, 2013 at 8:29 p.m.
Amen, Got2Kids, I have no problem with government helping businesses get established here. Better that than watching industry take more jobs overseas or giving money to folks who don't want jobs or refuse to work. It is past time for America to invest in jobs for America. Osceola is a region that should benefit greatly from this steel factory.
( permalink | suggest removal )
Populist says... January 30, 2013 at 6:10 a.m.
If Obama had been behind this, you rightwingers would have been screaming "socialism."
( permalink | suggest removal )
Populist says... January 30, 2013 at 7:05 a.m.
Got2Kids,
Of course, the boss needs to be paid what he or she is worth. I think you missed my point. Business deals must be examined on their merits. While in theory, this may be a good investment, we do not really have access to enough of the details to know. Government financing of private business deals should always be examined. Sometimes, business deals and bond issues are used as political payoffs for supporters. Most often, the bond lawyers and salesmen have ties to the politicians. I am not saying that this is happening in this case; I am just saying that I hope not. Some of the bailout money was well spent; some not. If any region needs help, this area of the state certainly does. I probably would prefer to see more state funds go to furthering computer and medical education as a means of providing jobs for many. However, I hope this deal works as envisioned.
( permalink | suggest removal )
PatWaverly says... January 30, 2013 at 8:13 a.m.
Come on you lefties, Mike Beebe is standing at the podium making the announcement. The last good Democrat standing is behind this thing so what is your problem? Of course it is a good thing. Using "government money" to attract business and JOBS is a great thing. Give a man a fish, teach a man to fish, and all that. Cheer up, there will something for you to gripe about soon, I'm sure of it. But this ain't it.
( permalink | suggest removal )
BarichMilhusseinObamaNixonPOTUS says... January 30, 2013 at 8:51 a.m.
It is easy to identify the people who would win the lottery and then spend all of their time complaning about the taxes. Misery loves company; maybe that's why there are so many liberals out there
( permalink | suggest removal )
Packman says... January 30, 2013 at 10:09 a.m.
Hey Populist - BH Obama would have never been behind a deal like this because it has nothing to do with promoting abortion on demand, gay marriage, gun control, or creating more entitlement addicts, all of which are his current priorities as the economy tanks. Actually, this is a great example of a government/private sector partnership for the public good. This "corporate welfare" is a sound investment of taxpayer dollars that will reap rewards for decades to come. This specific "corporate welfare" is in principle no different than various tax breaks provided industry that liberals love to whine about.
Hey inquire - This announcement discredits all your harping about the evils of right-to-work states. Big Union sucks. Deal with it.
( permalink | suggest removal )
To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.