How will the new steel mill jobs affect the Georgetown economy?

The City of Georgetown is about to have two major industries again – paper and steel – after new owners announced a plan to rehire 125 former workers for the steel mill. Those new jobs on the Georgetown waterfront will help more than just the steel workers.

The plant, which closed two years ago, hurt a lot of people in the local economy as nearly 170 jobs disappeared in 2015, and with them paying customers for other local businesses.

“After it closed I was out searching for jobs for a little while,” Mark Mercer, a former employee of the steel mill, said. “We had to tighten the budget a little bit, you had to watch your pennies.”

The mill, which closed for the first time in 2003, has a history of struggle, having closed again in 2008 and finally in 2015, leaving hundreds of workers out of jobs. Between 2003 and 2015 the plant – which at one time had nearly 1,000 employees – laid off workers.

During that time, the mill changed ownership from the International Steel Group, and was under ArcelorMittal ownership when it officially closed. In late April, ArcelorMittal announced that it entered into an agreement to sell the mill to Liberty House, a London-based company. Now, the new owners plan on opening the plant back up in spring 2018.

Mercer, who worked at the mill for 26 years, searched for a job for about a year before he was finally hired at the International Paper Company, which has about 600 employees, according to its website. During that time he was faced with the possibility of moving north to work at a different mill.

James Sanderson, United Steel Workers Local 7898 president, said that about 40 workers from the steel mill were hired at the paper mill. About 35 to 40 chose to train in different trades through Trade Adjustment Assistance. The TAA is a federal program in which workers can have up to two years of extended training if they lost their jobs or hours because of increased imports, according to the U.S. Department of Labor website.

“It was pretty stressful,” Mercer said. “We were very lucky that International Paper hired us, because I didn’t think the mill was going to reopen.”

Now, Liberty House plans to restore 125 jobs to former employees of the mill. A release from the company says that it hopes to eventually build the staff up to 250 workers.

“I’m very pleased and excited,” Mercer said. “We fought a hard battle to get the mill up and running and it’s just a wonderful Christmas present.”

What does this mean for Georgetown’s economy?

With plans for the steel mill to once again be up and running, the city will have two major industries – steel and paper.

Before the steel mill closed, Tupelo Holmes, a newly elected city council member and former steel mill worker, said that many of the workers would hang out at bars and restaurants along Front Street.

“Front Street hurt a lot” when the steel mill closed, Holmes said. Mayor-elect Brendon Barber Sr. said that one business in particular saw a decrease in profits by 250 percent the year the mill closed. Now, he believes that the quality of life in the area will improve due to the added jobs and benefits.

“Our business is fueled by the economy,” Tim Harrelson, manager of Buzz’s Roost along the waterfront, said. “It’s a form of income for me.”

Harrelson said that while the steel mill was operating, workers would stop in before and after their shifts, and that managers would often visit for lunch.

Holmes said the increased presence of workers in the area will not only help local businesses, but the tourism industry as well.

“It will help the businesses that tourism flourishes on,” Holmes said. “The steel mill provides other jobs other than the 125 going back. It’s going to be a huge economic impact in Georgetown.”

Sanderson agrees, hoping that the mill will have a larger impact than predicted.

“I think you’re going to see a much stronger economy in Georgetown, I think you’re going to see a lot more employees than what’s anticipated at the mill and I think you’re going to see other facilities wanting to come into Georgetown,” he said. “I believe just right here is a good starting point to let everybody know we’re open for business.”

Sanderson said he also believes changes made by Liberty House will work to keep the steel mill from closing again.

The company plans on making wire rod, which is often used in construction. However, this is just a starting point. Sanderson said there are already discussions of expanding back to what the mill made, including wire, nails and the steel used in tires.

“With what the company is saying about making improvements, I think it will be a lot more sustainable,” Mercer said. “If they diversify the product I think they’ll be more sustainable. I think since we’re the first mill they’re buying, they’ll be more interested in us.”

Sanderson said ArcelorMittal focused on producing flats, which were geared toward the automotive industry and were heavily affected by imports.

“I feel very confident that you’re going to see this plant here become very successful,” Sanderson said.

The Georgetown steel mill is the first plant in the United States that Liberty House has purchased, and it is planning on announcing more purchases next year, according to a press release from Liberty House.

Next steps

Now, with a plan set into motion to open the steel mill, city officials along with Liberty House are turning their attention to dredging the port.

“It will need dredged later on,” Sanderson said. “Right now it does not, but later on when they get into the different product mix and want to venture out and be able to produce more products, they will need that port to be dredged to where larger ships can come in.”

While officials do not plan for the port to be as large as Charleston’s, the area will need to be at least 27 feet deep in order to keep it running as a breakbulk port.

At low tide the port is currently 17 feet deep, allowing barges into the area. In November 2016 the Army Corps of Engineers estimated that it could cost nearly $70 million to dredge the port to 27 feet.

“We need to make sure we maintain our port to where they can be successful,” Sanderson said. “I do believe, once again, once the port’s dredged you will see more activity in Georgetown.”

Barber said he plans on reaching out to state and federal delegates to help start work on the port. He said he hopes to open discussions as soon as possible.

On top of that, Barber plans to meet with Liberty House officials to establish air and water quality standards before the mill begins work.

“I’m not only tickled that the mill’s reopening, I’m tickled that the community, during the election, stood up for people who want to go to work,” Mercer said.

This story was originally published December 23, 2017 at 3:22 PM with the headline "How will the new steel mill jobs affect the Georgetown economy?."