HARRISBURG, Pa., Dec. 12, 2006 (PRIME NEWSWIRE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that its MultiServ mill services division has been awarded two new multi-year contracts in Mexico valued at more than $13 million over their term.
MultiServ will expand its ongoing services to the DeAcero Saltillo mill southeast of Monterrey under a ten-year contract that awards MultiServ added responsibilities to undertake a comprehensive on-site slag processing and handling service for the mill. MultiServ will process 100 percent of the mill's slag, a co-product of the steelmaking process, in a newly centralized on-site slag processing and shipping operation. The operation is designed to effectively support DeAcero's plans for increasing its market share of commercial slag sales throughout Mexico. DeAcero is the largest wire and steel mesh producer in Mexico and the third largest in North America.
The contract further expands Harsco's leading role in providing environmental solutions to the steel industry, which faces increasingly stringent regulations throughout the world for the responsible handling and reuse of its steelmaking co-products and materials.
At the Cosica-Apizaco mill in Tiaxcala, MultiServ has been awarded a three-year contract to handle steel billets and finished products on-site, taking over work previously performed by a local contractor. The new contract will run concurrently with MultiServ's existing mill services contract at this site. The rebar and special structural steel mill, formerly known as ATLAX, was purchased in 2004 by Industrias CH, S.A. de C.V. (ICH), one of Mexico's principal producers of specialty steels. ICH operates additional plants where further contract opportunities may be possible.
The new contracts add to Harsco's expanding worldwide operating balance and concentrated industrial services focus. At its annual investors conference in New York last week, Harsco said it expects revenue growth of approximately 21 percent this year to more than $3.3 billion. The Company also presented its initial guidance for 2007, which includes a projected increase in earnings of 12-14 percent and an increase in sales of more than 7 percent. Both figures include only announced acquisitions.
Harsco Corporation is a diversified, worldwide company with four market-leading business groups that provide mill services, access services, engineered products and services, and gas containment and control technologies to customers around the globe. The Company employs approximately 21,000 people in 45 countries of operation and recorded 2005 sales of $2.8 billion. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information about Harsco, including its MultiServ mill services division, can be found at www.harsco.com.
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