Synalloy Corporation a producer of specialty chemicals, stainless steel pipe, vessels and process equipment, announced that it has paid off its USD 5,367,000 term loan and is currently debt free.

The rapid fall of stainless steel prices that occurred over the last half of 2008 has had a significantly adverse effect on profitability. However, it has led to a major increase in cash flow as the working capital requirements for inventory and accounts receivable have declined.

The excellent cash flow has made it possible for the Company to eliminate all of the USD 10,426,000 of bank indebtedness that was outstanding at 2008 year end. Having the full availability of a USD 15,000,000 bank line of credit along with anticipated cash flows from operations, Synalloy is in an excellent position to fund any future working capital needs when economic conditions improve, as well as plans to enter new product markets in the Metals Segment and other anticipated growth opportunities.