A system and method for forming and heat treating metal castings is provided with a vertical heat treatment unit positioned adjacent and downstream from a pouring station at which a series of molds are filled with a molten metal to form the castings. The vertical heat treatment unit includes a vertically oriented furnace chamber in which the castings are received, and which has a reduced footprint to reduce the manufacturing floor space required for the vertical heat treatment unit, and to enable the vertical heat treatment unit to be positioned in close proximity to the pouring station.