Harsco Secures New Multi-Year Contract in Brazil Valued At $90 Million

Worldwide industrial solutions and engineered products company Harsco Corporation HSC announced today it has been awarded a new multi-year contract valued at more than $90 million over its duration to support an all-new steel mill in Brazil with onsite environmental and logistics services. The nine-year contract at the new Vallourec & Sumitomo Tubos do Brasil steel complex marks a further expansion of Harsco's strong presence in the Brazilian steel and metals sector and a key opportunity to support the greenfield start-up of an all-new steelmaking operation. The contract builds on Harsco's long-standing relationship with the Vallourec group and its V&M do Brazil operations, which Harsco also supports with similar services. The all-new VSB mill is a joint venture between Vallourec and Japan's Sumitomo Metals aimed at the production of seamless steel tubes for the oil, gas and petrochemical markets. Using state-of-the-art steel technology, the plant will have a steelmaking capacity of 1 million tons of crude steel per year and an extrusion mill that will produce 600 thousand tons of seamless steel tubes per year. Harsco's onsite metal recovery and logistics services are scheduled to begin ramping up next month, with full operations expected in the second half of 2012. Announcing the award, Harsco Executive VP and Metals & Minerals Group CEO Galdino Claro said, "We are proud to be selected for this all-new plant and to work in collaboration with the VSB partnership. The oil and gas industry in Brazil and other export regions is expanding rapidly, and VSB is expected to become a major supplier to international markets. We look forward to making a very positive impact with expert environmental and logistics solutions that interface directly with VSB's core production."