Big River aims to displace imports: Correnti

Feb 11, 2013 | 04:54 PM | Catherine Ngai

Tags  Big River Steel, Nucor, Hickman, Tenaris, John Correnti, Arkansas, Joe Holmes, Mike Beebe Catherine Ngai

NEW YORK — John D. Correnti’s proposed $1.1-billion steel project in Osceola, Ark., aims to displace steel imports by offering higher-grade product domestically, the steel industry veteran says.

"We hope to sell a lot of steel that today is imported into the country for whatever reason—price consideration is one, but more than likely it’s size and a grade situation where some of the mini-mills won’t be able to make (product)," Correnti told AMM. "We’re always importing steel here. In robust times, we import a lot more than (in) recessionary times ... and, of course, freight and logistics are very important factors."

Correnti’s new venture announced last month, Big River Steel LLC, is contingent on the state legislature authorizing the issuance of $125 million in general obligation bonds under Amendment 82, which allows the legislature to approve up to 5 percent of Arkansas’ general revenue budget for bonding of "superprojects." The money generated by the sale of the bonds would provide a $50-million loan to the company, $50 million for site preparation, $20 million associated with piling and subsurface stabilization and $5 million for bond issuance costs. ....