HARRISBURG, Pa., April 25, 2007 (PRIME NEWSWIRE) -- Worldwide industrial services company Harsco Corporation (NYSE:HSC) announced today that its Harsco Track Technologies (HTT) division has been awarded a new order from Brazil's Companhia Vale do Rio Doce (CVRD) to construct and support a new mainline rail grinder that will be used by CVRD to reprofile some of the world's most heavily-used railway freight lines. Terms of the sale were not disclosed.
CVRD is the largest metals and mining company in the Americas and also owns and operates more than 8,000 km (5,000 miles) of track. CVRD has contracted with Harsco Track Technologies to construct a wide gauge, 96-stone mainline rail grinder for delivery by early 2008, together with two years of post-delivery operator and maintenance training, field service and spare parts support. The rail grinder unit will operate on CVRD's Carajas line, an 892 km (550 mile) link that transports iron ore and other cargo to the main maritime port at Sao Luis in Brazil's northern region. CVRD accounts for approximately five percent of Brazil's total exports.
The order is HTT's first in Brazil in more than a decade and could lead to additional orders as CVRD continues to evaluate its system-wide railway track maintenance equipment needs. HTT is one of the world's largest railway track maintenance services and equipment specialists, serving as a primary source for over 140 types and models of work equipment designed and built for the maintenance, renewal, and new construction of railway track. The division expects to benefit from the significant presence in Brazil of Harsco's MultiServ mill services operations, whose extensive on-site services to most of Brazil's major steelmaking operations typically involve heavy vehicle repair and maintenance capabilities at several locations.
Rail grinding has emerged as one of the fastest-growing and most effective maintenance practices for extending rail life, limiting rail traffic disruption and reducing the potential for rail failures. HTT's rail grinders are designed to reprofile rail surfaces for proper wheel-to-rail contact, which reduces surface stresses in the rail and also enables railways to move high-tonnage loads at increased speeds, thus reducing fuel consumption. Harsco's HTT division is one of the railway industry's leading rail grinding specialists, having developed and produced similar systems for major U.S. and international railroads and metro transit networks, including customers throughout China, Japan, India and Europe. Additional market opportunities are anticipated on a worldwide basis.
Harsco Corporation is one of the world's leading diversified industrial services companies. The Company posted 2006 revenues of $3.4 billion and employs approximately 21,500 people worldwide. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.
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