HARRISBURG, Pa., Feb. 3, 2004 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that its MultiServ mill services division, the world's single largest provider of on-site, outsourced mill services to the steel and metals industries, has been awarded a new multi-year contract at the Gerdau Acominas steel works in Brazil, that country's largest producer of steel blooms and billets and the only remaining major steel mill in Brazil not served by Harsco's MultiServ division.
The contract is valued in excess of $18 million over its duration and returns MultiServ to the Acominas works following an 11-year absence. MultiServ will take over responsibility for a range of outsourced mill services, including metal recovery, slag processing and transport, and scrap handling. The new contract is expected to generate positive Economic Value Added (EVA(r)) benefit in its first year of operation. Work is scheduled to begin in the second quarter of this year.
The contract adds to MultiServ's substantial relationship with the Gerdau Group, the largest long-products steelmaker in the Americas. Gerdau assumed control of the Acominas mill in 2002 after investing more than $1 billion to capitalize and modernize the unit and increase the Group's shareholdings. The Acominas mill produces more than three million tons of steel annually, and Gerdau has said it is studying the possibility of doubling the site's capacity to six million tons during the contract period. MultiServ also supports seven other Gerdau mills in Brazil and two in Canada.
Harsco's MultiServ division provides the world's leading steelmakers with a comprehensive range of on-site outsourced mill services that support the entire steelmaking process. The division provides services to more than 160 mills in over 30 countries. The division's recently-introduced MultiServ name and logo symbolize its continuing evolution and consolidation as a global, full-service enterprise, mirroring the steel industry's trend of consolidation and globalization.
Harsco Corporation is a $2.1 billion, 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 MultiServ division, can be found at www.harsco.com.