HARSCO GROUP AWARDED 3 NEW CONTRACTS TOTALING $135 MILLION
April 9, 2012
CAMP HILL, PA (April 9, 2012) . . . Global industrial services and engineered products company Harsco Corporation (NYSE: HSC) announced today three multi-year contract awards for onsite steel mill services from new customers in Bahrain, Sweden and Chile totaling more than $135 million in projected revenues.
Announcing the contracts, Harsco Metals & Minerals group CEO Galdino J. Claro said, “All three of these awards demonstrate the increasing geographic spread of our business and our strong environmental leadership in providing resource recovery solutions for the by-products of metals production.”
The contracts include the first steel mill to be built in Bahrain, the all-new United Steel Company (SULB) steelworks now nearing completion in the Hidd Industrial Area of northeastern Bahrain. The mill will be the Gulf Region’s first fully integrated producer of medium and heavy beams and structural steel sections, and is also envisioned to become the lowest cost producer of its kind in the world. Harsco’s new five-year contract, scheduled to begin in the second half of this year, will service the mill’s anticipated production levels of close to one million tons per year, with objectives for further capacity expansion in the coming years. The SULB works becomes the second Harsco Metals & Minerals group operating site in Bahrain, joining Harsco’s AluServ aluminum dross processing facility at Askar which will now also provide slag processing support for the SULB contract.
The award in Sweden comes from SSAB, the largest Nordic manufacturer of heavy steel plate, and calls on Harsco to provide a range of scrap management services at SSAB’s plant in Oxelösund over a ten-year period. Harsco’s services will enable the mill to better maximize its usage of internally-generated scrap for improved efficiency and lower costs, while also enhancing the sorting and segregation of highly alloyed scrap materials for various production recipes. Harsco’s work will include a high-productivity Ferrocut® operation for reducing oversized scrap material into production-ready sizes.
In the third award, Harsco will begin services at the Gerdau AZA steelworks in Chile, a leading regional producer of steel products for the construction sector and other markets. Gerdau AZA is one of the two largest steel plants in Chile, and with this latest award, both are now served by Harsco. Harsco’s work will include slag processing, metal recovery and the sale of slag aggregates. The Company’s services are scheduled to start up in the third quarter of 2012 and, following completion of a slag processing site, the Company expects to be fully operational with all service activities by the first quarter of 2013. The six-year contract adds to Harsco’s relationship with the Brazil-based Gerdau Group, the largest producer of long steel in the Americas and one of the main suppliers of special long steel in the world.
The three awards, all from new customers, come on the heels of another new customer contract announced last month by Harsco Metals & Minerals at the Alfa Acciai mill in Italy totaling more than $55 million in projected revenues, and on top of last year’s record contract awards from new as well as existing customers totaling more than $1 billion in projected revenues.
Harsco Corporation is a diversified industrial company delivering essential services and products to major industries that help build the world, including steel and metals, construction, railways and energy. Harsco’s common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.
# # #
[ back to article listing ]