Liberty Steel Halts Operations at Illinois Wire Mill, Furloughing 500 Employees

Temporary Shutdown and Furloughs
Liberty Steel USA, part of the financially struggling GFG Alliance, has temporarily idled its Peoria Wire Mill in Bartonville, Illinois, impacting around 500 workers. The decision, effective December 6, comes amid ongoing steel market challenges, including an influx of low-priced steel imports. The furloughs will affect workers in both the melt shop and wire drawing/finishing departments, with around 260 employees in the melt shop and 280 in the wire operations being temporarily laid off. While the mill is idled, a portion of the workforce will remain to fulfill existing customer orders.

GFG Alliance’s Financial Struggles and Impact on U.S. Operations
This move is a reflection of the broader financial difficulties facing GFG Alliance, which has been grappling with the collapse of its key financial partner, Greensill Capital, in 2021. Since then, the conglomerate has faced a string of financial setbacks, including creditors’ demands, legal challenges, and operational closures. The shutdown in Illinois adds to a growing list of idled or reduced operations across the United States, U.K., and Europe. A similar situation has unfolded in Georgetown, South Carolina, where Liberty Steel had previously reduced its workforce to just six employees and was selling off equipment due to ongoing market pressures.

Peoria Mill’s Legacy and Challenges
The Peoria Wire Mill, once part of the Keystone Steel & Wire operations, has a long history in the steel industry, tracing its origins back to the 19th century. The mill, which focuses on recycled steel production using electric arc furnaces (EAF), was acquired by Liberty Steel in 2018. At its peak, the mill boasted a production capacity of 700,000 tons per year, with the latest technology in EAF equipment installed during the 1980s and 1990s. Despite its significant legacy, the facility has faced difficulties in maintaining competitive production due to market fluctuations and the broader steel industry’s challenges.

Plans for Restart and Future Outlook
Liberty Steel has indicated that the Peoria Wire Mill will resume operations when market conditions improve, with a tentative restart set for early February 2025. The company remains hopeful that the market will stabilize, allowing for the restoration of full production. However, ongoing challenges in the steel sector, such as competition from cheap imports and financial instability within GFG Alliance, present significant hurdles.