Harsco Begins Industrial Grating Production in Brazil Under New Joint Venture
April 04 2011 - 3:28PM
Worldwide industrial services and engineered products company
Harsco Corporation (NYSE:HSC) announced today its formation of a
new joint venture enterprise in Brazil to produce and market
industrial grating products throughout the growing infrastructure
and commercial development sectors of Brazil and South America.
The agreement with Brazilian-based Armco Staco S.A. Indústria
Metalurgica capitalizes on the existing manufacturing resources of
Armco Staco in combination with Harsco's market leadership in
state-of-the art grating production and Lean operating processes
through its Harsco Industrial IKG division. Harsco Industrial IKG
is regarded as the pioneer of the world grating industry, having
invented the first grating products in the early 20th century for
construction of the New York City subway system.
Market demand for grating products throughout the region is
expected to continue to rise in support of such growing industrial
sectors as energy, mining, and offshore oil and gas, and with the
additional infrastructure expansion and new construction leading up
to two high-profile events in Brazil, the World Cup in 2014 and the
2016 Summer Olympics. Grating is used for high-strength, open grid
flooring, safety walkways, and work platforms throughout industry
as well as for a broad range of commercial uses.
Harsco will hold a majority interest in the new company, which
will operate under the name Harsco Armco Staco Gradesul Fabricação
de Grades Metálicas e Serviços LTDA, or Gradesul for short. The
company has created a new website, www.gradesul.com, to present its
capabilities and product portfolio. Gradesul is expected to compete
favorably in the region's metal grating sector, where most small
and mid-size competitors still manufacture grating by hand. The new
joint venture will also capitalize on both partners'
well-established business operations throughout the region to
cost-effectively share administrative services and pursue sales
leads.
The action comes as part of Harsco's continuing execution of its
OneHarsco strategy for expanding the international market presence
of its businesses as a knowledge-based solutions partner to global
customers, focusing particularly on the world's emerging market
economies. In addition to the new joint venture in Brazil
announced above, the Harsco Industrial group expects to close by
next month its previously-announced joint venture in Australia for
air-cooled heat exchangers, which will give Harsco an in-country
capability to support that region's significant natural gas
industry.
About the Joint Venture Partners
Armco Staco has produced a range of steel products at its Rio de
Janeiro plant since 1912, and now operates the region's largest
steel galvanizing operation. The company has also recently
expanded its business footprint into Argentina. Additional
information can be found at www.armcostaco.com. Harsco
Corporation is a leading industrial services and engineered
products company serving key industries that are fundamental to
global infrastructure including steel, construction, railways and
energy. Additional information can be found
at www.harsco.com.
The Harsco Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=361
CONTACT: Investor Contact
Eugene M. Truett
717.975.5677
etruett@harsco.com
Media Contact
Kenneth D. Julian
717.730.3683
kjulian@harsco.com
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