HARRISBURG, Pa., Aug. 10, 2006 (PRIMEZONE) -- Harsco Corporation (NYSE:HSC) announced today that its Patent Construction Systems division, the North American arm of the Company's global Access Services segment, has been awarded new orders for rental scaffolding and other access-related services totaling more than $3 million to support plant maintenance, retrofit, and environmental upgrades at four power plants in the eastern United States during the second half of 2006.
The new orders follow a record-setting second quarter for Harsco's Access Services segment and reflect a continuing backdrop of strong market activity across the segment's key nonresidential construction and industrial plant maintenance sectors. In particular, substantial new expenditures are entering the pipeline for power plant retrofit work required by the U.S. Clean Air Interstate Rule of 2005, which is designed to significantly reduce power plant emissions. Initial Phase I requirements are due to be completed by 2009, with full implementation by 2015. It is expected that nearly all the retrofit equipment that will be used to meet these standards will be installed in stacks and flues at height, requiring extensive scaffolding to provide worker access, and concrete structures to support the new equipment.
In the nonresidential construction sector, the American Institute of Architects (AIA) Consensus Construction Forecast Panel, which compiles input from forecasters at McGraw-Hill Construction, Reed Business Information and others, is anticipating a 6.3 percent increase over last year in U.S. nonresidential construction activity through the remainder of this year, and an additional 6.2 percent next year. If achieved, the AIA reports that this would be the best two-year period for domestic nonresidential construction activity since 1997-1998.
Evidence of the strengthening conditions includes a significant amount of new power generation capacity now coming off the drawing boards -- as many as 16 new units are planned in Texas alone, either as new plants or add-ons to existing facilities. Some of these are already into the bid process and should begin construction within the next year. The offshore market in the Gulf of Mexico is also recovering strongly, and Patent is supplying large quantities of long-term rental scaffolding for a number of oil platform repair, retrofit and construction projects.
"We are better-positioned than ever before to serve these strengthening markets," commented Patent's Executive Vice President and General Manager, Robert Safier. "Coming out of the industrywide slowdown earlier this decade, we have put a lot of effort into restructuring our operations. We've filled several key positions, purchased new and innovative equipment that is performing exceptionally well, and streamlined our distribution system for better efficiency. With ample utilization capacity to continue to grow as our markets grow, we remain positive about our opportunities to continue Patent's solid performance into 2007 and beyond."
Harsco's Access Services segment serves the nonresidential construction, industrial plant maintenance and energy markets as the world's foremost provider of access-related services. In addition to Patent Construction Systems in North America, the segment also includes Harsco's broad-based SGB international division and its Hunnebeck Group division, which operates throughout Europe and in the Middle East.
Harsco employs approximately 21,000 people in 45 countries of operation and recorded 2005 sales of approximately $2.8 billion. Harsco's four market-leading business groups provide mill services, access services, engineered products and services, and gas containment and control technologies to major customers worldwide. 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 Patent Construction Systems division and Access Services segment, can be found at www.harsco.com.
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