Liberty Steel Georgetown Inc. Hit with $7 Million Lawsuit Over Breach of Power Service Contract
Liberty Steel Georgetown Inc. has found itself in the midst of a legal battle with the South Carolina Public Service Authority, Santee Cooper, facing a lawsuit amounting to $7 million. The lawsuit, filed on February 13, 2025, accuses the steel manufacturer of failing to honor its service agreement for large power electric service, signed in May 2023. According to the lawsuit, Liberty Steel entered into a contract with Santee Cooper that required the company to pay for monthly electricity charges over five years.
Breach of Contract and Unpaid Charges
The service agreement between Liberty Steel and Santee Cooper stipulated that if the mill were to cease operations or default on its obligations, it would be required to pay the cumulative total of its minimum monthly electricity bills for the remainder of the contract. In this case, Liberty Steel stopped operations in October 2024, citing unfavorable market conditions.
The lawsuit specifically addresses two missed payments: November 2024 service charges of $167,280.50 and December 2024 charges of $166,942.56, amounting to a total of $334,233.06 in overdue payments. In response to the nonpayment, Santee Cooper sent a letter to Liberty Steel on January 2, 2025, notifying the company of the termination of the agreement and demanding payment for the outstanding amount.
However, with Liberty Steel ceasing operations and remaining idle, Santee Cooper claims that the company owes the remainder of the contract, amounting to $6,628,482. When combined with the overdue balance, the total sum sought by the lawsuit stands at $7,000,465.79.
Liberty Steel Georgetown
L&T Expands Reach by Acquiring Full Stake in LTSSHF for ₹170 Crore
Synopsis: Larsen & Toubro has acquired the remaining 26% stake in L&T Special Steels and Heavy Forgings Pvt Ltd from Nuclear Power Corporation of India Ltd for ₹170 crore, making LTSSHF a wholly-owned subsidiary. This acquisition enables L&T to enhance its manufacturing capabilities and broaden its market reach beyond the energy sector.
L&T Takes Full Control of LTSSHF, Bolstering Manufacturing and Market Expansion
In a significant move to expand its manufacturing footprint, infrastructure giant Larsen & Toubro has acquired the remaining 26% stake in L&T Special Steels and Heavy Forgings Pvt Ltd from the Nuclear Power Corporation of India Ltd for ₹170 crore. With this acquisition, LTSSHF now becomes a fully-owned subsidiary of L&T. This strategic decision strengthens L&T's position in the heavy engineering and manufacturing sectors, particularly in the nuclear, refinery, petrochemical, and power industries.
Acquisition Details and Agreement
As per the announcement made on February 18, L&T acquired the 26% equity stake in LTSSHF, along with 1.47 billion equity shares, 1.67 billion preference shares, and a secured loan provided by NPCIL to LTSSHF. Additionally, L&T executed a Joint Venture Termination Agreement with NPCIL, formalizing the termination of the previous partnership structure. This move represents a crucial step in L&T's strategy to gain full control over LTSSHF’s operations and assets.
The acquisition is valued at ₹170 crore, positioning L&T to further leverage LTSSHF’s advanced manufacturing capabilities to diversify its operations across various sectors.
L&T Special Steels and Heavy Forgings Pvt Ltd Profile
Established in 2009, LTSSHF is recognized for its state-of-the-art integrated manufacturing facility, which houses India's largest hydraulic press with a 9,000-metric-ton capacity. The company also boasts a 125-metric-ton electric arc melting furnace, making it one of the key players in producing critical components for nuclear, refinery, petrochemical, power, and heavy engineering sectors.
With the acquisition, L&T gains full access to LTSSHF’s extensive technical and manufacturing capabilities, which will now allow the company to enhance the utilization of its facilities. This increased control is expected to support L&T’s plans to make incremental investments in the company and expand its business beyond the energy sector into broader industrial applications.
Strategic Implications of the Acquisition
The acquisition of LTSSHF marks a strategic shift for L&T as it aims to bolster its position in high-value industries, particularly those that require complex and large-scale manufacturing processes. By bringing LTSSHF fully under its wing, L&T is poised to increase its market share in the heavy engineering industry and tap into opportunities for higher-value manufacturing in sectors such as nuclear, petrochemical, and power engineering.
This move comes shortly after the announcement that L&T’s minerals and metals vertical bagged a "significant" order to set up freight handling facilities in the GCC region, further emphasizing L&T’s growing presence in global markets.
