HARRISBURG, Pa., June 30, 2005 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that production backlogs in its Air-X-Changers air-cooled heat exchangers division are up more than 200 percent over this time last year, generating increased production levels and deliveries for the division as drilling activity in the natural gas industry, a key driver in domestic and international market demand for Air-X-Changers equipment, continues at record levels.
"As the global community continues to address the impacts of greenhouse gases, natural gas is recognized as a cleaner-burning energy source," said Scott W. Jacoby, Air-X-Changers vice president and general manager. "Our heat exchangers are the primary apparatus used to protect compression systems and condition natural gas during recovery, compression and transportation from underground reserves through the major pipeline distribution channels."
As reported this week in the Wall Street Journal, worldwide drilling activity is at its highest level since 1985, according to rig counts maintained by Baker Hughes. In North America, Air-X-Changers' primary market, gas rig counts are up more than 20 percent over one year ago, while strong increases have also been posted in Latin America, the Middle East and Asia. Several of these markets, in particular the U.S. and Canada, are turning to unconventional resources to meet the growing energy demand for natural gas. These sources require increased compression to extract the gas, thus creating more demand for the compression equipment coolers produced by Air-X-Changers.
A member of Harsco's Engineered Products and Services operating group, Air-X-Changers is the world's leading supplier of air-cooled heat exchangers and one of the oldest and largest manufacturing companies in the natural gas processing industry. The division posted sales of approximately $60 million last year. Operating from production facilities in Tulsa, Oklahoma, Air-X-Changers has successfully implemented lean manufacturing and Six Sigma process improvement initiatives to make significant gains in productivity over the previous market upswing in 2001. "This has allowed us to fully meet our customers' increased volumes without any compromise to the quality and delivery performance that continues to make Air-X-Changers the acknowledged market leader in our industry," said Jacoby.
Harsco Corporation is a diversified, worldwide industrial services and products company with annual sales in excess of $2.5 billion. Harsco's four market-leading business segments provide mill services, access services, engineered products and services, and gas containment and control technologies to customers worldwide. The company employs 18,500 people at over 400 locations in more than 40 countries of operation. Additional information about Harsco, including its Air-X-Changers division, can be found at www.harsco.com.
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