COMPANY EXPANSION ISG plans to buy maker of steel wire rod items

ISG is also in the process of acquiring Weirton Steel.
CLEVELAND (AP) -- International Steel Group Inc. said Tuesday it intends to acquire Georgetown Steel Co., a maker of steel wire rod products, for $16 million plus liabilities.
Georgetown Steel, based in Georgetown, S.C., filed for Chapter 11 bankruptcy protection in October and stopped production. ISG plans to restart operations at the plant in the third quarter. Contract talks have started with the United Steelworkers of America.
Brian Kurtz, ISG vice president and treasurer, said the cost of the assumed liabilities likely would be $3 million to $4 million.
He had no estimate on the eventual size of the work force. Georgetown Steel employed 500 when it shut down.
The deal for the company is subject to U.S. Bankruptcy Court approval. The boards of both companies have approved it. ISG expects the acquisition to close in June.
The Georgetown Steel plant's wire rods are used for wire, wire ropes, tire cord and springs.
"Rod market demand is strong and we believe that this acquisition offers opportunities similar to those we have achieved with our other acquisitions," said Rodney B. Mott, ISG's president and chief executive.
ISG last week made progress toward completing a $237.5 million acquisition of Weirton Steel Corp. by reaching a tentative settlement with creditors who have tried repeatedly to stop that deal.
The Weirton Steel deal would make ISG the No. 1 domestic integrated steelmaker.
ISG, based in Richfield, Ohio, in April reported first-quarter earnings of $70.9 million, or 68 cents per share, on sales of $1.7 billion.