Liberty Steel in Georgetown to close for three months, laying off 130 workers
Liberty Steel Georgetown is shutting down for at least three months because of a drop in demand for its products caused by the coronavirus pandemic, the company announced Wednesday.
Approximately 130 employees and contractors will be temporarily laid off or redeployed, with a small number of support function roles put under review, the company said. A skeleton staff will manage the maintenance of the facility.
Liberty Steel Georgetown is being placed under a “care and maintenance” regime, which will enable it to reopen quickly once the economic environment improves.
In the meantime, all customer orders for the wire rods the facility produces will be fulfilled from Liberty’s steelworks in Peoria, Illinois.
“Since the outbreak of COVID-19 we have seen demand for our products soften considerably and therefore we need to rebalance our production with forecast demand,” Liberty Steel USA chief executive officer Gregory Jones said in a news release. “This is a difficult decision which hasn’t been taken lightly. A small number of employees will remain on site to ensure that the mill is fully maintained and we will re-evaluate the position in three months’ time.
“… In spite of the pandemic, we continue to work closely with the city, state and other stakeholders on a long term plan for Liberty Steel Georgetown and believe there is a positive future for the steelworks.”
Unemployment insurance and state-based unemployment support will be immediately available to those affected by the layoffs.
A decision on restarting the mill will be made after three months based on market conditions.
“The United Steelworkers fully supports the decision being made by Liberty Steel which demonstrates their support for their employees,” said United Steelworks Local 7898 president James Sanderson. “The coronavirus pandemic is being taken seriously by the LIBERTY Management group. The decision to idle our plant fully supports the safety and the families of Liberty Steel.”
The steel mill has struggled to remain open in the past. It was closed from 2015 until June 2018, resulting in the loss of hundreds of jobs.
It reopened after it was purchased by Liberty House, a London-based company in late April 2017, from ArcelorMittal. The plant was originally owned by the International Steel Group, and closed for a few weeks in both in 2003 and 2008 due to struggles.
