Universal Stainless & Alloy Products, Inc.’s Board of Directors has approved the purchase of a sixth vacuum arc remelt (VAR) furnace, which will be installed at its Bridgeville facility.

The project, including equipment purchase and installation, is estimated to cost between $2.0 and $2.5 million and will be financed initially through the company's existing credit facility.

Mac McAninch, President and CEO, commented: "Our decision to invest in additional VAR capacity is in response both to immediate need and to expected demand based on customer and industry forecasts for the next three to five years. We project payback for this investment to be less than one year."

The company currently has five VAR furnaces located at its Titusville, Pa., facility. The remelt process is a necessary step in the production of high quality grades of steel primarily for aerospace applications.

Mr. McAninch concluded: "Our backlog to melt VAR products increased by more than 10% in the month of April, despite running our current furnaces 24-7. With the aerospace industry in its initial phase of recovery, it is important that Universal Stainless respond to the growing needs of our customers."

The new VAR furnace is expected to be operational in October.

Headquartered in Bridgeville, Pa., Universal Stainless & Alloy Products, Inc. manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and other alloyed steels. The company's products are sold to original equipment manufacturers, service centers, forgers, rerollers and wire redrawers.