West Virginia officials have committed to increasing by nearly 25% the already nine-figure sum they had invested in taxpayer dollars in a steelmaker looking to expand its in-state operations.
The state Economic Development Authority on Thursday approved a $75 million loan for Nucor Steel West Virginia, nearly three years after the Legislature committed up to $315 million in a January 2022 special session to lure Nucor to West Virginia.
Gov. Jim Justice said the $75 million would support Nucor as it plans to grow operations in Mason County, where it broke ground in October 2023 on what officials said would be a $2.7 billion sheet mill plant in Apple Grove expected to begin operations in the second half of 2026.
The mill is being built along W.Va. 2 about 28 miles north of downtown Huntington. Most of the mill is between the road and the Ohio River, but Nucor is also using land on the other side of W.Va. 2 also. Construction on several buildings began earlier this year. With some, steel frames have been erected and outer walls have been added, although not completely covering the exteriors.
Nucor not identified in meeting agenda
Heading into ThursdayÃÛÁÄÖ±²¥™s EDA meeting, details about the stateÃÛÁÄÖ±²¥™s support were scarce.
Economic Development Authority officials declined Thursday to say whether the loan is forgivable, saying loan terms and other details would be posted on the agencyÃÛÁÄÖ±²¥™s website at by the end of the day. They werenÃÛÁÄÖ±²¥™t available by deadline late Thursday afternoon.
The authorityÃÛÁÄÖ±²¥™s meeting agenda posted prior to the meeting did not mention Nucor, only listing an agenda item to ÃÛÁÄÖ±²¥œconsider approval of a resolution to provide financial incentives for a high impact development project in Mason County, West Virginia.ÃÛÁÄÖ±²¥
Economic Development Authority officials and spokespeople for the GovernorÃÛÁÄÖ±²¥™s Office and the Department of Economic Development did not respond before ThursdayÃÛÁÄÖ±²¥™s meeting to requests for more information about that and other action items. The EDA has not yet responded to a related Freedom of Information Act request filed Tuesday.
The EDA board approved the support for Nucor with little discussion beyond JusticeÃÛÁÄÖ±²¥™s remarks.
When asked about the nature of the Nucor expansion during a break in ThursdayÃÛÁÄÖ±²¥™s meeting, Justice said it was his understanding that Nucor is ÃÛÁÄÖ±²¥œexpanding their footprint.ÃÛÁÄÖ±²¥
ÃÛÁÄÖ±²¥œAnd that expansion, I guess, is going to take on a lot of different looks at the end of the day,ÃÛÁÄÖ±²¥ Justice said. ÃÛÁÄÖ±²¥œAnd I donÃÛÁÄÖ±²¥™t specifically know the individual looks that itÃÛÁÄÖ±²¥™s going to take on. But Nucor is just building bigger and bigger.ÃÛÁÄÖ±²¥
Nucor Steel West Virginia spokesperson Markee Schindler said 100 additional jobs supported by the stateÃÛÁÄÖ±²¥™s $75 million commitment would be located at the Apple Grove facility.
That means the state on Thursday loaned Nucor $750,000 per additional job expected on top of what officials have anticipated as 800 full-time workers at the plant.
Justice mentions Panhandle expansion for Nucor
Schindler did not address a comment from Justice that Nucor planned a loading facility ÃÛÁÄÖ±²¥œoutside the Wheeling areaÃÛÁÄÖ±²¥ with what she said would be another $800 million Nucor plans to invest in the project, raising its total capital committed to the project to $3.5 billion.
ÃÛÁÄÖ±²¥œWe consider the State of West Virginia and Mason County to be true partners in this effort,ÃÛÁÄÖ±²¥ Schindler said in an email, adding that the project would ÃÛÁÄÖ±²¥œcreate hundreds of high-paying jobs and produce the most advanced and sustainable steels for our modern economy.ÃÛÁÄÖ±²¥
Schindler said the additional funding being provided by the state will support infrastructure upgrades, including port enhancements and water treatment systems.
In a 2022 letter to the state Public Service Commission, then-Nucor Steel West Virginia vice president and general manager John Farris said the availability of renewable energy was a ÃÛÁÄÖ±²¥œkey considerationÃÛÁÄÖ±²¥ in NucorÃÛÁÄÖ±²¥™s decision to build the mill in Mason County.
But speaking to reporters during a break from the meeting, Justice, who will take retiring independent Joe ManchinÃÛÁÄÖ±²¥™s U.S. Senate seat next month, said it was ÃÛÁÄÖ±²¥œprematureÃÛÁÄÖ±²¥ to say whether heÃÛÁÄÖ±²¥™d be concerned by any dismantling of the Inflation Reduction Act, the landmark renewable energy and climate spending law enacted in 2022 with no congressional Republican support.
ÃÛÁÄÖ±²¥œThe reason itÃÛÁÄÖ±²¥™s premature is just this: When it gets right down to crunch time and everything, thereÃÛÁÄÖ±²¥™s going to be twists and turns and things modified like crazy and everything,ÃÛÁÄÖ±²¥ Justice said.
Steel to be used in wide array of applications
Schindler reported there are 1,000 contractors onsite building the sheet steel mill in Apple Grove and projected roughly 2,000 contractors will be required to finish the project at peak construction. Nucor-made steel will be used in construction, automotive, data centers and industrial applications, Schindler said.
The Legislature provided the stateÃÛÁÄÖ±²¥™s 2022 $315 million boost for Nucor by moving that sum from the then-Department of Health and Human Resources to the Department of Economic Development, and then restoring the balance of Health and Human Resources and Homeland Security with money from the American Rescue Plan Act.
ÃÛÁÄÖ±²¥œWe could not be more thrilled about the progress weÃÛÁÄÖ±²¥™ve made,ÃÛÁÄÖ±²¥ Schindler said.
