SAVANNAH, GA—Coastal Georgia is grappling with a severe economic downturn following two major blows: a massive immigration enforcement action that has halted work on a critical South Korean-backed battery plant and the permanent closure of two century-old paper mills. The convergence of these events has created a crisis of employment and investment in the Savannah region.

ICE Crackdown Cripples Hyundai-LG Project 

The area's burgeoning electric vehicle (EV) manufacturing sector—touted as a revitalization engine for the region—suffered a major setback after a large-scale immigration raid by U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI). On September 4, federal agents executed a warrant at the construction site of the Hyundai Motor Group-LG Energy Solution joint battery plant near Savannah, which is adjacent to the new Hyundai Metaplant.

The operation, described by officials as the largest single-site enforcement action in HSI history, resulted in the detention of approximately 475 workers, the majority of whom were South Korean nationals. The workers were suspected of visa violations, including overstaying temporary visas or working on visas that did not permit manual labor.

Work at the crucial battery facility, a cornerstone of Georgia's economic development strategy, has effectively ceased. Most of the detained Korean personnel, who included skilled technicians vital for specialized construction, have since returned home, save for one employee seeking to remain in the U.S. Local officials, including Congressman Buddy Carter and Economic Development Authority Director Trip Tolison, have publicly expressed a desire for the swift return of the necessary Korean technical staff to complete the plant. The Hyundai-related industry was projected to create up to 15,000 jobs in the region by 2031, with the Metaplant already spurring growth in housing, logistics, and warehousing.

Timber Industry Devastated by Mill Shutters 

Compounding the crisis, the area's deeply rooted forest products industry has been devastated by the closure of two major International Paper facilities. On September 30, the company permanently shut down its mills in Savannah and Riceboro, which are situated within the metro Savannah area.

These mills had been operating for over 90 years, processing timber resources into paperboard and packaging materials. The closures resulted in the immediate loss of 1,100 jobs, including engineers, operators, and middle managers. The impact is far-reaching, however, as the closure ripples through the state's entire timber supply chain. An estimated 52,000 workers in forestry, logging, and related industries—including haulers and landowners—are now facing severe economic strain.

The Georgia Forestry Commission's Forest Utilization Chief, Devon Dartnell, called the shutdown a "serious blow," noting that wood-related sectors, including the paper and logging industries, account for six percent of the state's total manufacturing. Dartnell cited factors like reduced demand for paper due to recycling and internet usage, along with the physical obsolescence of the 90-year-old facilities, as reasons for the closure.

The combined impact of the ICE raid disrupting future high-tech investment and the paper mill closures eliminating traditional, long-standing jobs places the Savannah region in a state of unprecedented economic anxiety. State officials are now scrambling to find short-term and long-term solutions, including worker retraining, job support, and efforts to either support the ailing timber industry or transition the shuttered mill sites to other uses.

[Copyright (c) Global Economic Times. All Rights Reserved.]