Universal Stainless to Invest $13 Million in Bridgeville Meltshop
01/30/2009 - Universal Stainless & Alloy Products announces plans to invest $13 million in its Bridgeville meltshop, including major upgrades in equipment, automation, and plant layout.
Universal Stainless & Alloy Products, Inc. announced plans to invest $13 million in its Bridgeville meltshop over the next 15 months.
The capital improvement features major upgrades in equipment and automation including the installation of a newly designed shell and automation equipment for its EAF; an upgrade of the alloy charging system at the AOD (Argon-Oxygen Decarburization) unit; and the addition of new ladle preheating equipment. The new EAF automation equipment will help the company to automate a number of recurring operating processes.
The capital improvement project also targets targeting improved product flow through modifications to plant layout as well as improvements to the meltshop and scrapyard material handling systems. The project will also encompass the implementation of new melting and refining automation software.
The company has developed its capital improvement program to help cut production cycle times, reduce customer lead times, and improve on-time delivery performance. The company said the upgrade will also help it to increase its material yields, reduce operating costs, and enhance working capital management.
The company is working with PNC Bank to establish a new revolving credit and term loan facility. This new facility will replace the company's existing revolving credit facility, which expires June 30, 2009. The combination of existing cash balances, future cash flows and the new facility are expected to be more than sufficient to fund this capital project as well as other future cash needs for the company.
"We are committed to delivering unparalleled customer service through reliable on-time delivery, short lead times and quality products,” commented Dennis Oates, President and CEO. “Over the past several months, we have critically evaluated our ability to meet this commitment. These investments in our meltshop will enable us to meet our commitments to customers and provide further opportunity to enhance the profitable growth envisioned for our company."
The company plans for equipment and infrastructure spending to be completed by the end of 2009 and the automation investment to be completed by the middle of 2010. The capital improvement is expected to begin producing cost savings in the fourth quarter of 2009. Once fully implemented, the capital improvement is expected to yield cost savings of more than $7.5 million per year.
Headquartered in Bridgeville, Pa., Universal Stainless & Alloy Products manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The company's products are sold to rerollers, forgers, service centers, original equipment manufacturers and wire redrawers.
