By CHRISTOPHER LENOIS

LAPLACE – Legislation to convert Bayou Steel’s $2.5 million tax credit is on the way to Gov. Mike Foster’s desk for approval after the State House of Representatives unanimously approved Sen. Joel Chaisson’s bill Monday afternoon. Officials of the LaPlace-based company are hoping this is a springboard out of its recent economic struggles.

Bayou Steel was the only Louisiana company to qualify for an exemption under the 1991 Recycling Credit Act. As the largest recycler of metal scrap in the state, they spent more than $16 million for recycling equipment during the 1990s. The recent recession suffered by the U.S. steel industry in the wake of cheap imported steel, however, would make that credit unusable for another 10-15 years.

A timetable that would mean extinction for a company which has lost nearly $45 million in the past 18 months.

“Credit against income tax doesn’t help when there is no income,” said Richard Gonzalez, Bayou Steel’s chief financial officer.

Getting the $2.5 million in cash will help the business ride out the recession. And though the federal import tariff has not helped as much as originally hoped, company officials see indicators of a recovering economy as a good sign for their own outlook.

“Our products go into a broad brush of industries: fabricators, rail cars, guard posts, conveyor belt manufactures. Companies say we can put some things off until things get better,” said Vice President Rodger Malehorn. “As the economy as a whole improves. Warehouses need more racks. Automobile manufacturers need more conveyor belts.”

Gonzales reported a 20 percent increase in shipments during the last fiscal quarter, and Bayou Steel has been able to hire enough employees to add a third shift again. Which is as encouraging to the employees as it is to the executives.

“It’s a morale boost for the guys working now. They’ve been putting in a lot of overtime,” said Al Pulliam, vice president of Human and Technical Resources.

The 26 additional employees on the new crew will reduce workweeks which recently have averaged 60 hours down to a number closer to 40, said Pulliam.

Bayou Steel could still add more than 100 jobs to reach full capacity. Since construction on the mill began in 1979, they have spent $382 million in payroll, and over $16 million in 2001 alone.

“If you brought that kind of company into Louisiana today, the government would fall over themselves to get them,” said Gonzales.

The effects of extend beyond Bayou Steel to the surrounding parishes as well. Economic formulas indicate one steelworker job means four additional jobs in the community.

“You get the dollar bill to turn over more than one time. That’s economic development,” said 58th Dist. Rep. Roy Quezaire, who voted in favor of the bill.

Local officials like Julia Remondet, the Economic Development Director for St. John the Baptist Parish, see Bayou Steel’s recovery from a symbol for other local businesses.

“When you have a good project people say things are moving forward. If a business struggles, overall health is judged by their growth,” said Remondet. “They’re (Bayou Steel) survivors.

“They’ll adjust to whatever it takes.”

Remondet said she has joined Port officials and members of the Metrovision Economic Development Partnership in meetings with Bayou Steel to continue the momentum and see what else can be done to help the business that has put $2 billion into the Louisiana economy since 1981.

“There are a lot of jobs there with a good salary level. Keeping them on their feet is important. They’re essential to the economy,” she said.

Malehorn, Gonzalez and Pulliam expressed their appreciation for St. John the Baptist Parish President Nickie Monica’s efforts on their behalf, as well the “solid delegation” in Baton Rouge.

Gonzalez described how Dist. 57 Rep. Robert “Bobby” Faucheux Jr., who sits on the House Ways and Means Committee, pushed through Dist. 56 Rep. Gary Smith’s bill that mirrored Chaisson’s in the senate. Sen. Louis Lambert was an ex-officio member of the senate committee when Chaisson presented his bill.

“It’s a critical piece of the puzzle for businesses both large and small in that region,” said Lambert, who added that he was impressed that even a representative the American Steelworkers Union Local 9121, Kinsley Porter, spoke on behalf of the company.

“It’s nice to see that kind of unity. It indicates all sides share the view that there’s potential for more jobs,” said Lambert.