International Steel Group Inc. announced today that it has completed the acquisition of the assets of the Georgetown Steel Company facility in Georgetown, South Carolina, for a purchase price of $18 million in cash, plus assumed liabilities.
“We want to thank the Georgetown community, the County of Georgetown and the United Steelworkers of America for their support in completing this transaction,” said Rodney B. Mott, ISG’s President and Chief Executive Officer. “We are committed to restarting and operating this facility. It has the reputation in the steel rod industry of producing high quality steel rod and we intend on maintaining this reputation.”
The Georgetown plant has the capability to produce high-quality wire rod products, which are used to make low carbon fine wire drawing, wire rope, tire cord, high-carbon machinery, and upholstery springs. The facility has annual steelmaking capacity of 1 million tons and rolling capacity of 800,000 tons, and also has the capacity to produce 500,000 tons annually of Direct Reduced Iron (DRI), a scrap substitute. Georgetown Steel filed for Chapter 11 bankruptcy protection in October 2003 and the plant has been idle since then.
“We have been looking to improve our product mix by broadening our offering of value-added products, and we are excited about entering the rod and wire market, which offers substantial growth opportunities for ISG,” Mott added.
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