Posted on Sat, Sep. 20, 2003
GEORGETOWN

S.C. aims to assist troubled steel mill


The Sun News

State and federal officials are trying to help Georgetown Steel Corp. secure a loan that could help the company through the rest of the year and pave the way to the rehiring of recently laid off employees.

Based on orders from Gov. Mark Sanford, top-level staff at the state Commerce Department have been assigned to help the plant. Insurance Department Director Ernst Csiszar also is involved.

"We're just really trying to pull out all the stops," said Clare Morris, Commerce spokeswoman.

The state officials are looking at "traditional and nontraditional solutions," Morris said. "There are lots of options that we are pursuing."

Commerce can't lend any money or guarantee a loan but can help broker a package of assistance, she said.

The state takes the steel mill's troubles seriously, she said.

Although other troubled businesses have asked for the agency's help during the economic downturn, none are as big as the steel mill or affect as many people, Morris said.

The plant's total economic impact in Georgetown County is estimated at $131 million. It is the county's second-largest private employer and one of its biggest taxpayers.

Analysts said it is crucial to Georgetown, which has the eighth-highest unemployment rate in South Carolina of 46 counties. It has suffered a series of layoffs and plant closings the past three years.

Daniel Thorne, the New York businessman who bought the mill in 2002, said Thursday that the mill was looking to the Commerce Department for assistance with temporary, short-term loan guarantees.

"I have not heard formally from anyone at the Commerce Department." Thorne said.

State Rep. Vida Miller, D-Pawleys Island, said the county's legislative delegation and the state's congressional delegation are working to find help for the steel mill.

"Any programs, any grants or any type of options," Miller said.

"The mill honestly feels like if they can get through this fourth quarter that they can make it," she said.

She said Thorne told her if he got the loans he would call back most of the more than 100 workers laid off in early summer, boost production and make improvements at the plant.

One possibility for collateral is the $2 million to $2.5 million the mill expects as its share of tariffs from countries judged to be illegally dumping steel, she said. But the bill authorizing those payments has not yet been signed by President Bush.

"If the mill knew that they were going to get this money, they could use that for collateral for a loan guarantee," Miller said.

Mill officials did not come to the delegation for help, she said. Rather, the effort was put in motion after the delegation visited the mill and asked if there was anything it could do.

Georgetown Steel has done "everything in their power to be self-sustaining," Miller said.

The state should do anything it can to help the plant keep running, she said. It employs 500 people and has a $670,000 weekly payroll.

"We've just got to buy this mill some time," Miller said.

U.S. Sen. Lindsey Graham, R-S.C., is leading the congressional delegation effort, including trying to get Bush to sign the steel tariff bill, Miller said.

All federal offices in Washington were closed Friday because of Hurricane Isabel, and Graham's staff was not available to comment.

Thorne bought the plant in July 2002 for $53 million after the previous owner filed for Chapter 11 bankruptcy protection.

The previous owner, Georgetown Industries, decided to liquidate instead of reorganize and is now selling off all assets and paying off creditors at about 15 cents on the dollar.

The plant has suffered from the economic downturn since Thorne bought it. He has said he can't afford upgrades until the economy improves.

But officials with the steel workers union said his hesitancy to install a rolling mill that would upgrade the plant's products is fueling fears that the mill might be headed for a shut down.


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




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