Harsco lands $225M contract with Indian steelmaker
Cumberland County-based Harsco Corp. said today it has received a $225 million multiyear contract to provide mill services at a plant in the network of India's largest steelmaker JSW Steel Ltd.
Harsco will provide resource recovery and slag management services at JSW Steel's Vijayanagar plant in Karnataka, India, beginning in the second half of 2013, the company said. Harsco already provides industrial services to the steel plant in the southwestern Indian state, as well as others under the JSW name.
JSW Steel is India's largest steel producer with total production capacity of 14.3 million tons per year, according to Harsco. India itself is the fourth-largest steel-producing country and is projected to grow considerably with planned capacity expansion in coming years, it said.
Harsco's Metals & Minerals segment, which will manage the contract, is the company's largest division at the moment with more than $1 billion in revenue over the past three quarters, according to the company's third-quarter results. The segment's nine-month revenue was down about 12 percent from 2011.
However, Harsco's Asia-Pacific region, which includes India, is one of only two the company operates in where year-over-year revenue grew for the first nine months of 2012, according to the results. Harsco's $150 million revenue for the region in that time was 0.7 percent more than a year ago. The only other market growing was North America at 0.2 percent.
JSW Steel is a subsidiary of the O.P. Jindal Group, one of India's largest companies with revenue of about $15 billion and interests in metals production, mining, energy, industrial gases, port facilities, cement and information technology.
Wormleysburg-based Harsco provides goods and services to industrial sectors, including metals production, energy, commercial and transportation construction, and railway maintenance. The company trades its shares on the New York Stock Exchange under the ticker symbol HSC.