ISG buys Georgetown mill

Recycling Today, June, 2004

International Steel Group Inc. (ISG), Richfield, Ohio, has signed an agreement to acquire the assets of the former Georgetown Steel Co. facility in Georgetown, S.C., subject to closing adjustments and approval by the U.S. Bankruptcy Court. The agreement has been approved by the boards of directors of both companies.

ISG plans to restart operations at the plant in the third quarter of 2004. Initial discussions are taking place with the United Steelworkers of America regarding a labor contract and staffing of the plant.

Georgetown Steel, a manufacturer of high-carbon steel wire rod products, filed for Chapter 11 bankruptcy last October and ceased production. The facility has annual steelmaking capacity of 1 million tons and rolling capacity of 800,000 tons.

The Georgetown plant produces wire rod products and also has equipment to make up to 500,000 tons of direct reduced iron each year.

The deal continues ISG's tactic of buying steel mills from bankruptcy courts, with the Georgetown plant joining mills acquired by ISG from LTV Corp., Bethlehem Steel Corp., Weirton Steel Corp. and Acme Steel Co.

The Georgetown mill opened in the late 1960s and employed from 250 to 500 people during its last years of operation, according to a report in the Cleveland Plain Dealer.