HARRISBURG, Pa., Nov. 2, 2007 (PRIME NEWSWIRE) -- Worldwide industrial services company Harsco Corporation (NYSE:HSC) announced today that its industry-leading MultiServ mill services division has signed one of its largest contracts yet in China, a 12-year agreement valued at more than $50 million over its term to support one of China's newest and largest steel operations, Ningbo Iron & Steel.
Salvatore D. Fazzolari, Harsco's President and CFO (and CEO-designee effective January 1, 2008) said the new contract is a further reflection of Harsco's continuing strategic execution. "As underscored by this award, Harsco's global growth strategies include steady, targeted expansion in the Asia-Pacific, Eastern Europe, Latin America, and Middle East and Africa sectors to further complement our already-strong presence throughout Europe and North America," Mr. Fazzolari said.
The Ningbo works is a major, all-new integrated steel plant now being launched in Zhejiang Province, as that region seeks to establish itself as a new iron and steel industrial base along the southeastern coastline of China, near Shanghai. The mill has recently begun blast furnace operations with an initial annual production capacity in the range of two million tons, and is expected to ramp up to full capacity of approximately six million tons within the next three years, making it one of the top 20 largest steel mills in China. The plant is a four-way joint venture of three Chinese steel producers and a Chinese investment firm. The majority shareholder is the nearby HangZhou Iron and Steel Works, MultiServ's largest customer in China.
MultiServ has been selected to operate and manage Ningbo's scrap yard, handling the receipt and stocking of scrap material, accurately loading materials to the mill's prescribed menus, and transporting the material on a real-time basis to the mill's steelmaking furnace. MultiServ's operations will include a computerized scrap management system capable of expansion in line with the mill's expected production increases.
"This opportunity to affiliate ourselves directly from plant start-up with a modern, world-class operation such as Ningbo fits perfectly into our strategic objectives for the China region," said Harsco President-designee and CEO of the MultiServ division, Geoffrey D. H. Butler. "We will continue to prudently address our opportunities for serving China's largest and strongest steel producers, in parallel with our continuing pursuit of the many opportunities we see in other regions of the world." China ranks as the world's number one steel producer and consumer but its steel industry remains highly fragmented, with approximately 1,000 steel-producing companies yet only some 50 mills with annual production of more than two million tons.
Harsco's MultiServ mill services division serves the world's leading steel and metals companies as an integral, on-site service partner at some 170 mills in over 30 countries. The division's core services include integrated materials handling, semi-finished and finished product management, and environmental recycling and by-product management. Similar services are provided to the makers of aluminum, copper and other metals.
Harsco Corporation is one of the world's leading diversified industrial services companies, serving major customers in the non-residential construction, steel and metals, energy and railway industries. The Company posted 2006 revenues of $3.4 billion and employs approximately 21,500 people 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 MultiServ mill services division, can be found at www.harsco.com.
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