HARRISBURG, Pa., March 15, 2004 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that its MultiServ mill services division, the world's single largest provider of on-site, outsourced mill services to the steel and metals industries, will significantly expand its services to one of Brazil's largest Electric Arc Furnace (EAF) steel mills under a new multi-year contract that supports the mill's plans to increase its production capacity.
The Belgo Piracicaba steel works is installing a new 130 ton Electric Arc Furnace and steel caster which are expected to double steel output to approximately one million tons within the next three years. To support the additional output, MultiServ will increase its on-site slag pot carrier operations as well as its on-site metal recovery and scrap handling services. The new seven-year contract is expected to increase MultiServ's average annual revenues by approximately 50 percent over the previous contract. Contract terms were not disclosed.
MultiServ's expanded scope of work is scheduled to begin ramping up in the second quarter of this year in conjunction with the start-up of the mill's new furnace and caster. The division also performs scrap shredding services at the mill under a separate multi-year contract. Belgo Piracicaba is part of the Belgo Group, one of Brazil's largest private enterprises, with a controlling interest held by Arcelor, the world's largest steelmaker and one of MultiServ's foremost customers. MultiServ supports more than 20 Arcelor mills worldwide, including five in Brazil.
Announcing the contract, Harsco Chairman, President and CEO Derek C. Hathaway said, "This expansion of our ongoing relationship with Arcelor and the Belgo operations in Brazil illustrates the opportunities for growth that arise from our long-term partnerships with the industry's leading producers. We expect MultiServ to become even stronger and more competitive in support of its customers as we execute our plans for focused and targeted investment in additional services and geographic expansion."
MultiServ provides the world's leading steelmakers and other metal producers with a comprehensive range of on-site outsourced mill services that support the entire steelmaking process. The global MultiServ division operates under long-term contracts at more than 160 mills in over 30 countries.
Harsco Corporation is a diversified, $2.1 billion industrial services and 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 MultiServ division, can be found at www.harsco.com.
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