Harsco Unit Receives Multi-Year Mill Services Contracts Totaling Over $40 Million in Additional Revenues

Contracts Expand Heckett MultiServ's Support to Arcelor's Sidmar Steel Works in Belgium


HARRISBURG, Pa., June 2, 2003 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that its Heckett MultiServ mill services division has been awarded additional service responsibilities at Arcelor's Sidmar steel works in Belgium under two new multi-year contracts expected to generate additional revenues in excess of $40 million over their duration.

Arcelor is the largest steel group in the world and one of Heckett MultiServ's largest customers, comprising a range of services at 26 Arcelor-owned mills throughout Europe. Heckett MultiServ's support of the Sidmar works began in 1981 with the introduction of scarfing services and has since grown to include scrap oxycutting, steel slab management, transport and handling, and steel coil and roll transport. Under the latest contracts, which average nearly seven years in duration, Heckett MultiServ is assuming added responsibilities for slag pot carrying, metal recovery, and other related services, while also expanding the scope of its existing services for on-site scrap management and handling in support of Sidmar's plans for increased steel production. The contracts, both underway, are forecast to generate positive Economic Value Added (EVA(r)) from their first year of operation.

The largest of Harsco's four operating groups, Heckett MultiServ is the world's leading provider of specialized mill services to the steel and metals industries, operating on-site under long-term, renewable contracts. Having achieved its debt pay-down targets and supported by continuing strong operating cash flows, Harsco has said it plans to increase its capital expenditures in 2003 to pursue a number of targeted growth opportunities for add-on services with existing customers, and to undertake services to new sites and new customers. Its clear market leadership notwithstanding, Harsco estimates that Heckett MultiServ's penetration level within its target markets is less than 20%, giving the Company substantial room to further grow market share.

In this regard, Harsco has announced new or expanded mill services contracts within the past two months totaling well over $125 million in anticipated new revenues, including contracts in Australia, Chile, and the United States, along with the above-mentioned contracts in Belgium. Among the services being provided are new by-product briquetting services for BHP Steel in Australia, a new scrap baling service for the CHS steel works in Chile, and mobile slag transport and expanded scrap management services at SMI Steel-Alabama. All of these contracts represent expanded services to existing customers. In addition, Harsco recently announced that Heckett MultiServ has been awarded slag handling and metal recovery responsibilities at Rocky Mountain Steel Mills, a new customer. At year-end 2002, the total estimated future value of Harsco's multi-year mill services contracts stood at approximately $3 billion.

Harsco Corporation is a diversified 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 Heckett MultiServ division, can be found at www.harsco.com.

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