Harsco Receives 7-Year, $50 Million Contract at New Saudi Arabian Steel Mill

Published on Tuesday, 22 November 2011 11:34 Written by TradersHuddle Staff

CAMP HILL, Pa., Nov. 22, 2011 (GLOBE NEWSWIRE) -- Global industrial solutions company Harsco Corporation (NYSE:HSC) announced today a new 7-year contract valued at more than $50 million to provide onsite slag management, materials logistics, metal recovery and by-product processing services to the Middle East's newest steel mill, the $1.35 billion South Steel complex now nearing completion in Saudi Arabia's Jazan province along the southern Red Sea coast.

The plant, expected to be commissioned in the first quarter of next year, will produce an anticipated one million tons of steel rebar and billets, with plans for further expansion in keeping with Saudi Arabia's expected growing market demand. Last year, Saudi Arabia announced plans to invest $400 billion in new infrastructure projects through 2014, funded from the Kingdom's cash reserves. A large part of South Steel's production output is expected to go into the development of the surrounding Jazan Economic City, slated to become one of the Kingdom's major industrial hubs with a projected population of 300,000 residents and major seaport facilities to serve the petrochemical and heavy industrial sectors.

The contract is expected to position Harsco to bid on future phases of the mill's expansion, and adds to Harsco's growing strategic presence in Saudi Arabia and the greater Middle Eastern region, where Harsco already serves a number of the region's largest metals mills as well as its non-residential and industrial construction, rail and energy sectors.

"We are delighted and honored to be chosen for Saudi Arabia's most modern steel production facility," said Harsco Chairman, President and CEO Salvatore D. Fazzolari. "This is a major win that further solidifies Harsco's long-term commitment to this critical emerging growth market."

Harsco Corporation is a diversified global solutions company serving major industries that are fundamental to worldwide infrastructure development and economic growth. 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.

The Harsco Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=361

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