Deal is the third for the metal services company in India in the last six months.
The industrial company Harsco Corp. has signed a multi-year contract valued at more than $160 million over its duration with Essar Steel India Ltd., a large steel producer and exporter headquartered in India.
Harsco says the 15-year agreement with Essar is the company’s third major contract announcement in India within the past six months. The company recently signed contracts with JSW Steel, a large private sector steel producer in India; and Jindal Stainless Ltd., India’s largest stainless steel producer. Combined with other ongoing work, the company’s portfolio of business in the Indian steel sector totals more than $500 million in projected future revenues over the next 10 to 15 years.
The contract includes slag management and metal recovery services at Essar’s Hazira facility, the world’s fourth largest single-location steel plant with a steelmaking capacity of more than 10 million tons a year. Harsco’s work is expected to begin in the third quarter of 2014.
Essar Steel India is part of Essar Group, a $27 billion diversified corporation.
In a release, Patrick Decker, Harsco’s CEO, says, “This is another signature win for our Harsco Metals & Minerals group. Working with high-caliber producers such as Essar and the Jindal Group in India continues to align our presence with some of the world’s principal steelmakers, particularly as global production increasingly shifts to major emerging markets.” According to industry forecasts, India is poised to become the world’s second-largest producer of steel as early as the latter part of this decade. It currently ranks fourth.