MILLERSBURG - Prompted by what spokesman Dan Greenfield called very strong end-use markets, including nuclear power, ATI Wah Chang Albany is planning to expand its production of zirconium sponge.

Wah Chang will increase production by 2 million pounds a year thanks to facility and equipment improvements estimated at $42 million, Greenfield said from ATI headquarters in Pittsburgh, Pa.

Most of the cost - $40 million - is earmarked for new production equipment to be used in addition to existing machinery. Building modifications to help house the new equipment are estimated at $2 million.

Although no date has been set for the start of the renovation, plans have been submitted to the city, according to Greenfield. He said improvements will be necessary to meet increasing demands.

"The market is there. Zirconium is very important for use in highly corrosive environments," Greenfield said.

He pointed to chemical processing plants and also nuclear power plants that use fuel rods made of zirconium.

The sponge is used in producing zirconium metal products including Zirconium 702, an industrial-grade metal that's extremely resistant to corrosion.

"We believe we are in the beginning of a nuclear power renaissance," Greenfield said.

The expansion could create as many as 15 new jobs at the plant, which currently employs about 1,100, he added.

"Initially we believe that there is a very good possibility that the expansion will bring in that many jobs and there is potential for more as production increases," he said.

The planned improvements are designed to keep Wah Chang in step with the market.

"It makes us a more solid business," Greenfield said.