May 5 2004
International Steel Group Inc. today announced that it has signed a definitive agreement to acquire the assets of the Georgetown Steel Company facility in Georgetown, South Carolina, subject to customary closing adjustments and approval by the U.S. Bankruptcy Court. The agreement has been approved by the boards of directors of both ISG and Georgetown Steel.
ISG expects the acquisition to close in June. The Company 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 in October 2003 and ceased production. The facility has annual steelmaking capacity of 1 million tons and rolling capacity of 800,000 tons. The Georgetown plant has the capability to produce high-quality wire rod products, which command a significant market premium compared with commodity rod products. Wire rods are used to make low carbon fine wire drawing, wire ropes, tire cord, high-carbon machinery, and upholstery springs. Georgetown Steel also has capacity to produce 500,000 tons annually of Direct Reduced Iron (DRI), a scrap substitute.
“The Georgetown facility represents some of the best steelmaking rolling mill capabilities in North America,” said Rodney B. Mott, ISG’s President and Chief Executive Officer. “Rod market demand is strong and we believe that this acquisition offers opportunities similar to those we have achieved with our other acquisitions.”
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