HARRISBURG, Pa., April 4, 2011 (GLOBE NEWSWIRE) -- 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.
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