Harsco Corporation (HSC - Free Report) recently entered into a new 15-year contract with Essar Steel India Limited - one of the largest producers of steel in India. Valued at over $160 million, the scope of the contract includes slag management and metal recovery services at Essar's steel plant in Hazira. Work is expected to commence in third quarter 2014.
Essar Group is one of the world's largest integrated flat carbon steel producers. Its diversified work portfolio ranges from extra wide plates, hot rolling, cold rolling, galvanizing and colour coating along with an extensive worldwide distribution network. This deal is the third major contract for Harsco in India within a period of six months. The other contracts are with JSW Steel and Jindal Stainless Steel Limited. With the addition of these contracts, Harsco's Indian steel sector portfolio is estimated to generate revenues in excess of $500 million over the next 10 to 15 years.
The Essar Steel contract is a major boost for the Harsco Metals & Minerals division. This division has been benefiting from its expansion in the Indian steel market. India is currently the most rapidly developing markets for steel manufacturing. Back to back contract wins have been a catalyst for Harsco which thereby are expected to augment its long term revenues to approximately $0.5 billion.
Headquartered in Penn, Harsco is a diversified, multinational provider of market-leading industrial services and engineered products. The company serves global infrastructure, metals, minerals, rail and industrial sectors.
Harsco currently has a Zacks Rank #3 (Hold). Other stocks that look promising in the industry and are worth a look now include Kobe Steel Ltd. (KBSTY - Free Report) , Nippon Steel & Sumitomo Metal Corporation (NSSMY - Free Report) and Shiloh Industries Inc , each carrying a Zacks Rank #1 ( Strong Buy).