HARRISBURG, Pa., Oct. 28, 2003 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today its largest order ever for railway track maintenance equipment, a $68 million, eleven-machine contract for China's Ministry of Railways that will be produced by Harsco's Track Technologies division over the next 36 months.
The order follows more than a year and a half of high-level trade discussions that have received strong support from the U.S. Department of Commerce and the Congressional and State leadership of South Carolina, where Harsco's Track Technologies division is headquartered. Senior government officials have endorsed the order as a positive step towards reducing the current U.S.-China trade imbalance and preserving U.S. manufacturing jobs. South Carolina Congressman Jim DeMint assisted in the initial stages of the project to get it started, while South Carolina Governor Mark Sanford was present in China last week for the signing of the letter of intent. U.S. Commerce Secretary Donald Evans has been present this week for the final signing of documents. Financing arrangements through the Export-Import Bank, which supports the financing of exported U.S. goods and services, are expected within the next four to six weeks.
Included in China's order are mainline and switch and crossing rail grinders, which are used to re-profile rail surfaces to extend rail life and reduce the chances of rail failure, and Harsco's unique Stoneblower machine, which is used to re-stabilize and align track. The Stoneblower pneumatically injects ballast stone under the railway ties or "sleepers" to achieve track positioning to an accuracy of one millimeter without disturbing the pre-existing ballast foundation. The result is a smooth track surface immediately available for full-speed railway operations. The Stoneblower unit will be the first of its kind in China.
Commenting on the contract, Harsco Chairman, President and CEO Derek C. Hathaway said, "This major order supports our confidence in Harsco Track Technologies' improving outlook, as well as our stated expectations for Harsco's overall earnings growth in 2004. Our international orders for track maintenance equipment and services total more than $175 million since our having strategically embarked on securing a greater international presence following our 1999 acquisition of Pandrol Jackson and formation of our consolidated Harsco Track Technologies division. Major international purchasers of Harsco track maintenance equipment have included China, the U.K., Germany, Singapore andr others. As these units enter long-term service, follow-on orders fospare parts, support equipment and future upgrades are anticipated. Opportunities also exist internationally for Harsco's track maintenance services."
Harsco Track Technologies is one of the largest and most comprehensive railroad track maintenance equipment and service organizations in the world. Together with its full menu of track maintenance services for major railroads, short lines and transit systems, the division is a primary source for over 140 types and models of work equipment used in the maintenance, renewal, and new construction of railway track.
Harsco Corporation is a $2 billion, diversified industrial services and engineered products company employing approximately 17,500 people in more than 40 countries of operation. Harsco's market-leading businesses provide mill services, access services, gas and fluid control products, and other infrastructure products and services to customers worldwide. Additional information about Harsco, including its Harsco Track Technologies division, can be found at www.harsco.com.
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