Bridgeville, PennsylvaniaUS-based Universal Stainless & Alloy Products (Universal Stainless) announced on June 14 that it has signed an agreement to purchase the assets of North Jackson, Ohio-based substantially-completed facility Patriot Special.
Patriot Special Metals' state-of-the-art radial forge, which is in the initial startup phase, and its vacuum induction melting (VIM) facility will be completed by Universal Stainless for production in the first quarter of 2012. The facility also includes two vacuum arc remelt (VAR) furnaces, scheduled for startup in Q4 2011, and related equipment for heat treating and finishing long products, including trepanning.
The addition of the largest hydraulic radial forge will expand Universal's products to include large and long forged squares, rounds, bars and custom shapes for aerospace, power generation, petrochemical and general industrial tool steel and shafting applications. Numerous specialty metals producers have also expressed strong interest in utilizing the unique characteristics of the radial forge to supplement their in-house hot working capacity. Adding VIM-VAR capability will enable Universal to enter selected global high nickel alloy and super alloy markets for aerospace parts, landing gear, helicopter rotor masts and gears and non-magnetic drill collars for oil and gas exploration.
The purchase price for the assets is $104.5 million subject to certain adjustments and an additional $25 million for the completion of equipment installation.
The transaction is expected to close by the end of July this year, subject to customary closing conditions, including regulatory approvals and the completion of bank financing. The facility is expected to be fully operational in the first quarter of 2012.
In a separate action, Universal will invest $6 million to install an electro slag remelt furnace in North Jackson, enhancing the company's ability to respond to the recovery in power generation demand.