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Harsco Awarded 7-Year Contract to Support New Saudi Arabian Steel Mill
Nov. 23, 2011 Harsco Corp. has been awarded a new seven-year contract to provide onsite slag management, materials logistics, metal recovery and by-product processing services to the $1.35 billion South Steel complex in Saudi Arabia. The contract is valued at more than $50 million.
South Steel, the Middle East’s newest steel mill, is now nearing completion in Saudi Arabia’s Jazan province along the southern Red Sea coast. The plant, which expected to be commissioned in the first quarter of next year, will produce an anticipated one million tonnes 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. Jazan Economic City is expected to have a population of 300,000 residents and major seaport facilities to serve the petrochemical and heavy industrial sectors.
Harsco expects the new contract with South Steel will position it to bid on future phases of the mill’s expansion. The contract will also support Harsco’s growing presence in Saudi Arabia and the greater Middle Eastern region, where the company 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 Corp. is a diversified global solutions company serving major industries that are fundamental to worldwide infrastructure development and economic growth.