John Ferriola, Nucor's president and CEO, told delegates in a Q&A session that a DRI plant would 'cost less money [than a new steel mill] and it would be quicker to put a second DRI facility in Louisiana'. He also said that a second unit would cost between $100 to $150 million less than the first unit and would take between 18 and 24 months to complete (from the date of announcement).

He said that the necessary infrastructure was already in place at the company's St. James Parish facility and that, for this reason, it wouldn't be as expensive as starting from scratch.

The St. James Parrish DRI facility in Louisiana cost $750 million to develop and shipped its first shipment of DRI (2.5Mt) toward the end of 2013.

It's possible that Nucor might contract Midrex Technologies for its second facility despite having opted for Tenova HYL for its first unit.

Plans to construct a blast furnace in Louisiana have been put on hold, but Ferriola hinted it was a case of 'never say never'. He said that the company had the technology, the expertise, the drawings and the people in place to build one.

Sources: American Metal Market, Steel Times International