Posted on 24 Apr 2020
Liberty Steel has decided to temporarily halt production at its Georgetown steelworks for a minimum period of three months. The decision is attributed to weak global economic conditions due to covid-19 pandemic.
According to company press release, the decision is likely to impact nearly 130 employees at the wire rod plant, who will be temporarily laid off or redeployed. They will be eligible for unemployment insurance and state-based unemployment support. A few workers will be retained for maintenance works. The mill is currently put on ‘care and maintenance’ mode and will be reopened upon marked improvement in economic conditions.
Gregory Jones, CEO, Liberty Steel noted that the decision to temporarily close the facility was hard one to make. The company is in talks with city and state officials on long-term plan for the mill and that the steelworks has a bright future. Meantime, the existing orders from the plant will be fulfilled by its Peoria, Illinois mill, Jones added.
The decision received full support from the workers’ union. Reacting to the decision, James Sanderson, president of United Steelworkers Local No 7898 said that the decision to idle the plant fully supports the safety of workers and their families. This indicates the seriousness with which the company is handling the crisis situation created by the pandemic spread, he added.
Source:Scrap Monster
