Harsco Environmental

About Harsco Environmental

Harsco serves metal producers and construction companies. Its Metals and Minerals segment provides on-site mill services at steel factories, including metal reclamation, slag processing, and scrap management for steel and nonferrous metals producers across more than 50 countries. The Infrastructure segment offers concrete forming, access-related construction, scaffolding rental and sales, and site safety services. It also provides industrial services like plant shutdowns, upgrades, and maintenance. Other Harsco units produce railway track, steel grating, and heat exchangers. Harsco operates globally at approximately 450 locations in 50 countries. ArcelorMittal is one of its largest customers, representing about 10% of total sales annually for the past three years. To address global economic challenges, Harsco has focused on cost reduction and implemented improvement programs in 2010 and 2011. In late 2011, it began transforming its Industrial and Metals and Minerals segments by streamlining European operations, exiting underperforming locations, and reducing debt. The company continues to expand globally through joint ventures and evaluates acquisitions in targeted growth markets, especially in emerging economies, while pursuing organic growth through diversification, streamlining, and consolidation. Despite a global economic recession and uncertainties in UK and Western European nonresidential construction markets, Harsco generated $3.3 billion in revenue in 2011, a 9% increase from 2010. This growth was driven by favorable currency exchanges, increased global steel production in its Metals & Minerals segment, higher demand in the Industrial segment, and greater sales volume of erection and dismantling services in the Infrastructure segment. Higher sales were partially offset by an underperforming Rail segment, impacted by the timing and mix of equipment shipments. Harsco reported a net loss of $11.5 million for the year, attributed to restructuring and pension costs, and significant income tax expense. In 2012, Harsco expanded its international presence by securing $20 million in contracts for railroad maintenance equipment in China, South Korea, and the UK. This included providing grinder vehicles for China's Ningbo Rail Transit Group's new rapid transit system and selling maintenance equipment to South Korea's Sampyo Engineering and Construction for its high-speed train line. A rail grinder sale was also made for the UK rail network, where Harsco has operated for a decade. Also in 2012, Harsco signed a 20-year services contract with China's largest steelmaker, Hebei Iron & Steel (HBIS) Group, valued at over $375 million. Harsco will manage the handling and processing of materials at HBIS's Tangshan Iron & Steel flagship site. As part of its strategy to expand in key international markets, Harsco formed a joint venture in 2011 with Brazil-based Armco Staco S.A. Indústria Metalurgica. This venture aims to produce and market industrial grating products for infrastructure and commercial development sectors throughout South America, combining Armco Staco's manufacturing capabilities with Harsco's expertise in grating products. Grating is utilized in construction for applications like open-grid flooring, safety walkways, and work platforms, as well as for various commercial uses.