Universal stainless announces $3.5 million capital project

Citation

(2007), "Universal stainless announces $3.5 million capital project", Anti-Corrosion Methods and Materials, Vol. 54 No. 6. https://doi.org/10.1108/acmm.2007.12854fab.010

Universal stainless announces $3.5 million capital project

Universal stainless announces $3.5 million capital project

Universal Stainless and Alloy Products, Inc., Bridgeville, PA, Chairman and CEO Mac McAninch notes: “Our capital investments over the past two years have enabled us to better respond to opportunities in our niche markets to date. We have decided to take another major step to enhance our capabilities by adding high temperature annealing equipment capable of oil, water and air quenching at our Dunkirk facility. Dunkirk's high-temperature heat treating operation, which is required for most of its product categories, is approaching full utilization. This capital expansion project, which will cost approximately $3.5 million and is scheduled for completion in the fourth quarter, has the potential to expand Dunkirk's annual sales by as much as $20 million. Our continued reinvestment of capital combined with our focus on further improving our processes and on-time delivery performance reflects our ongoing commitment to better serve the needs of our customers.”

In the second quarter of 2007, the Universal Stainless and Alloy Products segment had record sales of $55.1 million and operating income of $5.8 million, yielding an operating margin of 11 percent. The 21 percent increase in sales from the 2006 second quarter reflected a doubling of sales to forgers mainly of billet for power generation applications and a 57 percent increase in sales of bar products to service centers mainly for aerospace applications. These included the contribution of a new vacuum-arc remelt (VAR) furnace installed in August 2006 and the effect of higher nickel prices on the surcharge pricing mechanism. These increases were partially offset by lower shipments of tool steel plate to service centers.

The Dunkirk specialty steel segment reported record sales of $21.3 million and operating income of $3.7 million for the 2007 second quarter, resulting in an operating margin of 17 percent. Dunkirk's 32 percent increase in sales and 60 percent rise in operating income over the 2006 second quarter were due to improved VAR-remelted feedstock supply from Bridgeville, workforce additions, and the effect of higher nickel prices on the surcharge mechanism. The sales growth reflected a 37 percent increase in sales of bar products to service centers and OEMs, which offset lower sales of rod and wire products to service centers.