The historic Liberty Steel mill in Georgetown, South Carolina, has entered a period of uncertainty as operations ceased nearly two weeks ago, marking a significant setback for the local steel industry. The facility, which had previously shown promise with plans to expand its workforce to 100 employees in 2023, now retains only six workers from its original staff of 80 who returned after the COVID-19 pandemic.
Liberty USA's spokesperson, Reace Smith, confirmed the operational pause, citing unfavorable market conditions as the primary reason for the shutdown. The company maintains that it is actively monitoring the situation and exploring options for a potential restart when market conditions improve, though no specific timeline has been provided.
In a significant development, Insteel Industries Inc. has acquired Liberty's subsidiary, Engineered Wire Products, in a $70 million deal. The transaction included the transfer of downstream-related equipment from the Georgetown facility, specifically two drawing lines. EWP, known for manufacturing welded wire reinforcement products for construction purposes, represented a valuable asset in Liberty's portfolio.
The impact of this development extends beyond the immediate business transaction, as Georgetown City officials have been closely monitoring the situation since October 11. The city's involvement is particularly significant due to its Redevelopment District clause, which could potentially affect the mill's future operations.
Under the city's current zoning laws, the situation becomes more complex as the regulations stipulate that if the mill remains inactive for 365 days from October 11, city authorities have the power to permanently terminate industrial operations on the Front Street property. This provision adds another layer of uncertainty to the facility's future.
H.O. Woltz III, President and CEO of Insteel, expressed enthusiasm about the EWP acquisition, highlighting how it strengthens their market position and expands their geographic presence in the Midwest. This strategic move by Insteel contrasts sharply with Liberty's current challenges in maintaining operations at the Georgetown facility.
The mill's employees received notification of the temporary production pause on April 19, specifically affecting wire rod production. This development represents a significant shift from the optimistic expansion plans announced in 2023, highlighting the volatile nature of the steel industry and its susceptibility to market conditions.
