Harsco Lands Multi-Year Contract at New Brazilian Steel Complex

Company estimates the value of the contract at more than $90 million.


Harsco Corp., headquartered in Harrisburg, Pa., has been awarded a nine-year contract valued at more than $90 million.

According to Harsco, the contract with Vallourec & Sumitomo Tubos do Brasil (VSB) steel complex in Minas Gerais, Brazil, expands its presence in the Brazilian steel and metals sector.

Harsco says the contract builds on its well-established relationship with the Vallourec group and its V&M do Brazil operations, which Harsco also supports with similar services. The VSB mill is a joint venture between Vallourec and Japan's Sumitomo Metals aimed at producing seamless steel tubes for the oil, gas and petrochemical markets.

The steel mill will have a steelmaking capacity of 1 million tons of crude steel per year and an extrusion mill that will produce 600,000 tons of seamless steel tubes per year. Harsco's onsite metal recovery and logistics services are scheduled to begin ramping up next month, with full operations expected in the second half of 2012.

Galdino Claro, Harsco executive vice president and Metals & Minerals Group CEO, says, "We are proud to be selected for this plant and to work in collaboration with the VSB partnership. The oil and gas industry in Brazil and other export regions is expanding rapidly, and VSB is expected to become a major supplier to international markets. We look forward to making a very positive impact with expert environmental and logistics solutions that interface directly with VSB's core production."

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