Harsco Expands European Operations

The U.S.-based mill services company Harsco Corp. has expanded its presence in Europe with the signing of a five-year contract with the Slovenian steel company Acroni d.o.o.

Harsco reports that its Harsco Minerals division has signed a five-year contract with the company that is estimated to total more than $25 million over the duration of the contract. According to Harsco, the Acroni facility is the largest steelmaking operation in Slovenia.

In addition to being the largest steelmaker in Slovenia, Harsco notes that Acroni is the fifth largest manufacturer of finished electrical sheet steel in Europe; and the third largest producer of heavy stainless steel plates, a product sector where the mill has made substantial investments in recent years to expand its market position.

In announcing the new contract, Harsco notes that the deal expands the company’s business in Europe. The company also says that the contract in Slovenia reflects the company’s strategies for further international expansion into the world's emerging market economies.

The contract calls for Harsco to assume responsibility for processing and commercialization of stainless steel slag co-products produced by the steel mill. Harsco will recover metal content from the slag and will take responsibility for handling the residual slag material. The company expects to sell the recovered metal in new steel production or through its cooperative partners with which the company has relationships in this region, such as Scholz AG.
Harsco also will assume responsibility for processing of stockpiled slag at the mill, estimated to be around 300,000 tons of material.

Work under the contract is scheduled to begin by the end of this year, and will include the construction of an on-site slag processing and metal recovery facility that will be owned and operated by Harsco.

Acroni, which exports about 70 percent of its production, is considering increasing its stainless steel production.