Management Turnover as Change Agent

Wednesday, December 26, 2007

Universal Stainless Appoints New President and CEO

Universal Stainless and Alloy Products, Inc. USAP (NASDAQ), the specialty steel manufacturer whose products are sold to rerollers, forgers, service centers, OEMs and wire redrawers, tapped Dennis A. Oates as the president and CEO of the company. Oates will replace founder and long-time CEO (1994) and chairman Clarence McAnich. McAnich will remain chairman. The appointment is a definite positive for the firm. Oates will officially take his positions on January 2.

Earlier in the year, Universal brought in Kenneth Matz as president. At the time, he was considered heir apparent to McAnich's CEO position once the head of the company decided to hand over the reins of the CEO position. Matz left the company recently to pursue other opportunities. According to the Pittsburgh Business Times,
Oates ... most recently served as vice president of the specialty alloys operation of Carpenter Technology, based in Wyomissing, Pa. He also served as president and CEO of TW Metals in Birmingham, Ala., and president and COO of Connell Limited Partnership, a privately held metals recycling and fabrication firm based in Boston.
In statement McAnich said,
Oates is "the right person to lead our company going forward."

"I have known Dennis for many years," McAninch said. "He is sharp, tough and highly knowledgeable about the global specialty steel business from both the manufacturing and distribution sides of our industry."
Oates appointment is a relief, it seemed to appear that McAnich might not have been willing to give up some of the reins which could have turned into a problem for the firm going forward.

Keep a close eye on Oates and what he does for Universal and whether or not McAnich really begins to give up the reins of running the company.

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