HARRISBURG, Pa., June 9, 2003 (PRIMEZONE) -- Following on to its being named Union Pacific's 2002 Services Supplier of the Year, Harsco Corporation (NYSE:HSC) announced today that the railroad, North America's largest, has awarded the Company's Harsco Track Technologies (HTT) division two new multi-year contracts for rail grinding and track renewal services that are expected to add nearly $40 million in additional revenues over their duration to HTT's ongoing services for the railroad. The contracts range from five to eight years in duration, with the potential for follow-on, multi-year renewals.
The new agreements further a nearly 100-year track maintenance products and services relationship between Harsco Track Technologies and Union Pacific. In honoring HTT as its top services supplier for 2002 at ceremonies last month, the railroad said that Harsco "plays a critical role in Union Pacific's yearly program maintenance work -- providing maintenance of way work equipment, repair parts and services."
In support of the new agreements, Harsco will construct a 120-stone production rail grinder and a smaller switch and crossing grinder, along with an all-new Track Renewal Train incorporating several state-of-the-art technology upgrades that will offer significantly improved efficiency and lower operating costs over previous models. Deliveries are scheduled for the latter half of 2004.
The new units will complement HTT's existing service fleet of production and switch and crossing grinders, track renewal units and other equipment already deployed on the Union Pacific and operating at full capacity with HTT crews, from which Harsco derives services revenues based on each unit's level of use.
Harsco Track Technologies has recently captured several new opportunities for its rail grinding, track renewal and other track maintenance services and equipment, particularly internationally, where Harsco has received new equipment orders from Network Rail and other customers in the UK, as well as customers in Germany, China, Singapore and elsewhere. Harsco Track Technologies is North America's largest provider of railway track maintenance services and equipment and the second largest in the world, serving as a single source for over 140 types and models of work equipment used in the maintenance, renewal, and new construction of railway track.
Harsco Corporation (NYSE:HSC) is a $2 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 Harsco Track Technologies division, can be found at www.harsco.com.
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