Liberty Steel’s $70M Capital Raise and Headquarters Relocation Plans
Liberty Steel is pressing ahead with a $70 million capital raise, despite facing a new lawsuit from ArcelorMittal. The funds are earmarked for capital expenditures at its Peoria, Illinois plant, and for relocating its corporate headquarters from Dallas, Texas. This new investment builds on an earlier restart effort supported by BlackRock and other investors, which brought the Peoria facility back online in March 2025 after a six-month shutdown.
A major steel buyer close to the company described the lawsuit as “a blow” but not fatal, assuming market conditions remain stable. Wire rod prices have surged over the past year, giving Liberty a potential runway to meet financial obligations, including the disputed billet payments at the center of the lawsuit. The company continues its production ramp-up, aiming to reach its 700,000-tonne annual capacity in the coming months.
The steel buyer also noted Liberty had historically undercut competitors, a strategy that hurt profitability during a wave of cheap steel imports. Under BlackRock’s financing terms, Liberty must now align prices more closely with domestic producers to maintain operational sustainability. Industry sources suggest this strategy, if combined with stable financing and production growth, could allow Liberty to recover lost ground.
ArcelorMittal Lawsuit Complicates Liberty Steel’s Investment Narrative
While Liberty Steel has not publicly commented on the lawsuit, industry insiders confirm that the case was brought by ArcelorMittal Long Products of Contrecoeur, Quebec. The legal action surfaces just as Liberty testified before the Peoria County Board to secure a $2.65 million county loan. The company also seeks a $25 million grant from the Illinois Department of Commerce and Economic Opportunity to support its expansion and job creation plans.
In its July 29 board testimony, Liberty stated that the headquarters move and plant investment could bring 700 new full-time jobs to Peoria. However, the county delayed the loan decision until January 2026, creating additional uncertainty for the steelmaker. Meanwhile, BlackRock has not responded to media inquiries, and ArcelorMittal remains silent on the nature of its claims.
Despite these setbacks, Liberty maintains investor support and customer confidence. Buyers and distributors have reportedly increased orders to help the company stabilize. Still, much depends on market conditions and Liberty’s ability to meet both legal and operational challenges.
SuperMetalPrice Commentary:
Liberty Steel’s $70 million capital plan signals strong ambition—but the ArcelorMittal lawsuit poses a serious test. The timing is critical: global wire rod prices have peaked, and a potential downturn could undercut Liberty’s fragile recovery. Investors like BlackRock have added discipline, mandating price alignment with domestic peers, which may stabilize revenues. However, Liberty must execute flawlessly on production, secure local and state support, and navigate legal headwinds to regain market trust. Peoria could become a strategic hub—or a cautionary tale—depending on Liberty’s next moves.
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