This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ark. Gov. Announces $1.1 Billion Steel Mill Plan

By MICHAEL STRATFORD

LITTLE ROCK, Ark. (AP) â¿¿ The wraps came off Arkansas' largest ever economic development project Tuesday as Gov. Mike Beebe unveiled plans for a $1.1 billion steel mill along the Mississippi River that private investors are poised to build -- so long as legislators approve millions in startup funding.

Big River Steel, LLC, would employ 525 people at a new plant near Osceola if legislators approve $125 million in bond financing to be repaid over 20 years. If the Legislature rejects the pact, another state is poised to step in, Arkansas' economic development chief said, without specifying the state.

Mississippi County was hit hard after an Air Force base closed in the 1990s, and about one-third of its residents currently live in poverty. The mill's average salary would be $75,000 â¿¿ about double the state average â¿¿ and it would turn Mississippi County into the second-largest steel producing county in the country, Beebe said.

"It is an event that's going to bring a struggling Delta county out of the doldrums," Osceola Mayor Dickie Kennemore said.

The facility will take scrap metal and reduce it back to steel, according to Arkansas Economic Development Director Grant Tennille. Nucor Corp. already operates a similar mill in Blytheville, and since it opened in 1988, Mississippi County has seen its unemployment rate cut in half.

"This could do exactly the same thing again and then some," Beebe said at a news conference unveiling the plant.

The majority of the $125 million Beebe is proposing â¿¿ $75 million â¿¿ would be a grant to Blue River Steel for startup costs associated with building the facility. The remaining $50 million would be a loan the company would have to repay.

Arkansas' total net cost of repaying the bonds would be about $5.1 million per year over 20 years, based on an estimated 3.7 or 3.8 percent interest rate, according to economic development officials.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs