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Harsco to Provide On-Site Services for Emirates Steel Industries
Apr. 17, 2009 Harsco Corp.’s Harsco Metals group has signed a new five-year agreement for the Emirates Steel Industries (ESI) mill in Abu Dhabi, the company’s second major contract in the last two months in the United Arab Emirates.
With the new contract, Harsco will undertake a comprehensive range of on-site services under an exclusive relationship that extends from the handling of incoming iron ore and other materials to finished product and co-product management. The new contract is valued at more than $50 million over its term.
The modern government-owned ESI mill in Abu Dhabi, was established in 2001 to support the country’s burgeoning requirements for reinforcing steel. The mill, which is already the largest in the country, is supported by increasing demand from the UAE’s construction sector. The facility is currently undertaking a nearly $1-billion expansion that will more than triple its rolling mill capacity and increase its annual steel production capacity to 1.4 million tonnes.
“We are indeed honored and highly enthusiastic about our opportunities to serve this strategically important emerging market and its excellent prospects for growth,” said Harsco Chairman and CEO Salvatore D. Fazzolari, commenting on the award. “These wins give us a solid platform to build upon as the Gulf region continues to substantially increase its investment in vital infrastructure and the steel-making capacity to support it. These wins also support our ongoing strategic objectives for continuing to expand and diversify our customer base.”
The latest award follows a similar UAE contract Harsco received in early March totaling more than $35 million. Together, the two contracts mark the start-up of an all-new country of operation for the Harsco Metals business group.
Harsco Corp., one of the world’s leading diversified industrial services companies, employs approximately 20,000 people in 50 countries of operation and recorded 2008 sales of approximately $4 billion.