MultiServ receives new contracts totaling nearly $100 million at three South American Steel Mills
HARRISBURG, PA (September 1, 2006) . . . Worldwide industrial
services and products company Harsco Corporation (NYSE: HSC)
announced today that its MultiServ mill services division has been
awarded new multi-year contracts totaling nearly $100 million in
projected revenues over their duration for a range of steel mill
services at three mills in South America.
The awards include a major landmark contract in the province
of Santa Fe in Argentina with one of that country's leading steel
makers, the Villa Constitucion plant of Acindar Industria Argentina
de Aceros SA, where MultiServ will operate a comprehensive on-site
scrap management service.
MultiServ's new service, expected to be fully operational by
the middle of 2007, will substantially improve the availability and
flow of scrap materials to the mill for its Electric Arc Furnace
steelmaking operations, while also supporting Acindar's plans to
increase production. Scrap is a raw material to the EAF process,
and accounts for a high percentage of the total cost of producing
steel. MultiServ's responsibilities under the new 10-year contract
will include a new high-volume scrap shredder service and a state
of the art, on-site scrap cutting, loading and storage
operation.
The Acindar works operates under Arcelor Brazil, which has
made substantial investments to increase the mill's production
efficiency and capacity since acquiring a controlling interest in
2001. Acindar produces a range of steel products for the
manufacturing, agriculture and construction sectors in a country
where the economy has recorded 9 percent annual growth in the last
three years.
In Brazil, MultiServ will add to its services at Arcelor's
Belgo Piracicaba works by expanding its on-site scrap handling
services to include new front-end responsibilities for managing and
handling the mill's incoming scrap materials prior to shredding.
Belgo Piracicaba is a leading producer in Brazil's long products
carbon steel sector. The new five-year contract, which also calls
for an array of broad service responsibilities, continues
MultiServ's long contractual relationship at the Belgo Piracicaba
mill, where in addition to scrap management, MultiServ provides
traditional slag pot hauling and metal recovery services.
Also in Brazil, MultiServ will introduce an around-the-clock
ladle transport service at Arcelor's Belgo Mineira Juiz de Fora
works, marking the division's first service entrée at this
mill. Under the new three-year contract, MultiServ will supply and
operate specialized mobile transporters that will carry molten iron
from the mill's two blast furnaces to its Electric Arc
Furnace.
Announcing the awards, Harsco Chairman and CEO Derek C.
Hathaway said, "These new contracts attest to Harsco's considerable
organic growth opportunities within the international arena and
include important new relationships from which to demonstrate our
value proposition for improving operating efficiency and lowering
costs for our customers. As these three contracts reflect, our
organic growth opportunities include both the expansion of services
at existing sites, and the introduction of services at mills we do
not currently serve. Global bidding remains strong, and we look to
our considerable internal cash flows and strong balance sheet to
amply support Harsco's accelerating growth potential."
Harsco's MultiServ division provides the world's foremost
steel producers with a comprehensive range of services that support
the entire steelmaking process, including integrated materials
handling, semi-finished and finished product management, and
by-product recovery and recycling. Similar services are provided to
the makers of aluminum, copper and other metals.
Harsco Corporation is a diversified, worldwide company with
four market-leading business groups that provide mill services,
access services, engineered products and services, and gas
containment and control technologies to customers around the globe.
The Company employs approximately 21,000 people in 45 countries of
operation and recorded 2005 sales of $2.8 billion. Harsco's common
stock is a component of the S&P MidCap 400 Index and the
Russell 1000 Index. Additional information about Harsco, including
its MultiServ mill services division, can be found at http://www.harsco.com/.
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