HARRISBURG, Pa., Oct. 28, 2009 (GLOBE NEWSWIRE) -- Worldwide industrial services company Harsco Corporation (NYSE:HSC) announced today that it has entered into a joint venture partnership for rental scaffolding, formwork and shoring services and equipment with one of the largest construction groups in China.
Harsco's agreement with Zhejiang Construction Materials and Equipment Company Limited, a subsidiary of Zhejiang Construction Group, brings together Harsco's extensive global expertise and resources with one of the largest construction organizations in China, having annual sales in excess of $6 billion. The joint venture will initially target major project opportunities in the commercial building, infrastructure and industrial plant maintenance sectors of Zhejiang Province, a rapidly-growing region on China's eastern coast that ranks as China's fifth largest economic province. Zhejiang has become a center for chemical, electromechanical and textile production and a focal point for continued economic and infrastructure development. Its 11 major cities are ranked among the top 30 in China for per capita income. The partnership will be based in Hangzhou, the capital of Zhejiang Province.
The joint venture agreement was signed today at an official ceremony in Hangzhou attended by U.S. Secretary of Commerce Gary Locke; Ambassador Ronald Kirk, President Obama's senior trade representative; and Zhejiang Provincial Governor Lu, Zushan, all of whom voiced their support.
Announcing the new relationship, Harsco Chairman and CEO Salvatore D. Fazzolari said, "This is an exciting new gateway for Harsco into one of the world's most buoyant construction economies. We are delighted to be in partnership with a company whose size and stature rank among the very best in China and whose focus on supporting economic growth and development directly complements our own." Harsco will hold a 70% equity share in the new joint venture company. Operations are expected to begin in the latter part of the first quarter of 2010.
"We believe that over the longer term, China has the potential to be a significant market for Harsco's services and products," Mr. Fazzolari continued, "although at this early stage it's impossible to predict with certainty the potential revenue opportunity from this agreement and other opportunities we are considering."
Harsco Corporation is a diversified industrial services company serving global industries that are fundamental to worldwide economic growth, including infrastructure, metals, railways and energy. Harsco is recognized as one of the Fortune 1000 leading companies in America and has been named five times to the Platinum 400 list of the best big companies by Forbes magazine. Harsco's common stock is a component of the S&P Mid Cap 400 Index and the Russell 1000 Index. Additional information can be found at Harsco's website at www.harsco.com.
The Harsco Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=361