Posted on Sat, Oct. 18, 2003


State out of options for mill assistance
Only Georgetown Steel package denied

The Sun News

State officials don't know of anything further they can do for Georgetown Steel beyond the package that was rejected by workers Wednesday.

"I do not know of anything," said state Rep. Vida Miller, D-Pawleys Island. She and other local legislators worked with local and state officials to come up with the aid package Georgetown Steel requested.

The governor's office said it has done all it can. After the vote Wednesday night to reject the plan, Gov. Mark Sanford said through his spokesman that he was pleased to work on the mill's behalf given the tight economic times for the state.

Workers voted against a plan for a 60-day, 10 percent pay cut. That was part of a company cost-cutting plan, along with $1 million in new capital injected by owner Daniel Thorne in return for relief on the plant's $500,000-a-week power bill.

Santee Cooper was to give Georgetown Steel its $210,000 deposit back and let it pay biweekly instead of weekly.

That would have given the company about $3 million in cash-flow wiggle room to help get it through the fourth quarter, Miller said.

Georgetown Steel officials said they think a combination of a rising economy and higher steel prices would take over in the new year, she said.

The pay cut was "part of a total package, and Santee Cooper was doing this in good faith with the steel mill," Miller said.

Steelworkers Union of America Local 7898 president James Sanderson said Santee Cooper should give the company back its deposit anyway and let it pay monthly as most other customers do.

Any risks to Santee Cooper would total less money than the state would pay out in unemployment checks and other support if the plant closes, Sanderson said.

The mill is not behind on any bills with Santee Cooper, said Willard Strong, spokesman for the utility. The mill's payment arrangement is typical of what is required of companies after a bankruptcy.

The previous owners filed for bankruptcy protection for reorganization then decided to liquidate. Thorne bought the mill through a bankruptcy court sale.

"When you declare bankruptcy, that's a serious thing," and Santee Cooper was trying to protect its revenue and other customers by imposing a special payment plan, Strong said.

He didn't think anything else would be done unless the workers' changed their position.

"I think we've demonstrated that we want to work with those folks," he said. "They are in a tough position. I wish them the best; we all do."

Miller said simply releasing the deposit and extending the payment schedule would not give Georgetown Steel the $3 million it said it needed to get by for the next few months.

The only other hope she sees is the possibility of refunds from tariffs charged to foreign steel manufacturers who export their products here. But that fund has a limited amount, and it is unknown how much Georgetown Steel could receive from it, if anything, she said.

U.S. Sen. Lindsey Graham, R-Seneca, said Wednesday he will continue to work on the tariff refunds for the mill.


Contact ZANE WILSON at 520-0397 or zwilson@thesunnews.com.




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