The Doe Run Company announced today (June 29) that it will not build a new lead processing plant at the Herculaneum location.
"We concluded that building a plant here would generate an unacceptable financial risk to the company," Jerry Pyatt, vice president and chief operating officer, said in a news release.
"We recognize this may be disappointing news for many. However, we see a bright future for Doe Run," he said.
The company plans to close the Herculaneum lead smelter at the end of 2013, which means about 280 employees at the plant will be looking for work.
In the news release, Pyatt said the company would work with employees to help them plan for their transition as the smelter closes.
The news comes in the midst of two large developments proposed at the Herculaneum site - an industrial park and a Mississippi River port.
"Doe Run will also continue to support the repurposing of the Herculaneum site for future business and employment opportunities," Pyatt said.
In March, a development group called Riverview Commerce Park (RCP) LLC, announced plans to buy 500 acres in Herculaneum from the Doe Run Co., including the company's smelter, to build a commercial/light industrial complex.
RCP was formed by two St. Louis-based companies - Environmental Operations Inc., and J.H. Berra Construction.
Stacy Hastie, chief executive officer for Environmental Operations Inc., said today that Doe Run's announcement won't stall the project.
"We have been planning this development all along under the assumption - we always try to plan for the worst-case scenario - that the new technology would not be built there," Hastie said.
The Jefferson County Port Authority has been working toward a multi-site port, with the first development in Herculaneum, followed by sites in Pevely and Crystal City.
Dan Govero, chairman of the county Port Authority, said port board members hoped that Doe Run's new plant would be a tenant at the proposed port facility.
"But we kind of had our doubts all along," Govero said.
"It's not going to stop us. It's not going to slow us down. We're still moving ahead," he said. "They (RCP) are in negotiations with Doe Run on the land. The port is in negotiations with them (RCP). We'll move forward from here. Best-case scenario, we could have some activity at the port this fall."
Doe Run, formerly the St. Joe Lead Co., has been processing lead in Herculaneum since 1892 and has been scrutinized by the federal Environmental Protection Agency. But Hastie said RCP is equipped to work out any contamination issues.
- Peggy Scott
