HARRISBURG, Pa., Oct. 28, 2008 -- Worldwide industrial services company Harsco Corporation (NYSE:HSC) announced today its receipt of a follow-on, two-year contract valued at approximately $5 million to continue its role as the principal scaffolding subcontractor for the construction of new living accommodation and facilities at four British Army garrisons, on Salisbury Plain and in Aldershot in the south of England. The two-year program embraces scaffolding to over 100 new build assets.
The contract is in support of Project Allenby/Connaught (PAC), the largest Estates PFI (Private Finance Initiative) ever let by the U.K.
Ministry of Defence. PAC was awarded in March 2006 to Aspire Defence, the joint venture formed to manage the program. Aspire Defence includes U.K. contractor Carillion, one of the U.K.'s leading infrastructure, building and business services organizations, and U.S. contractor Kellogg, Brown and Root, a leading global engineering, construction and services company.
Harsco's contract covers the next two-year phase and continues the Company's active involvement as the primary scaffolding subcontractor since the program's inception. PAC will improve the quality of life for 18,700 soldiers -- 20% of the British Army -- and includes the provision of modern high-quality, fully serviced and purpose-built living and working accommodation. An estimated GBP 1.2 billion (approximately $1.85 billion) will be spent over a ten year period on construction as new housing is built and old facilities are demolished.
Within just 2 1/2 years, the project has already brought significant improvements for the British Army. Some 161 new or refurbished buildings have been handed over, at an average rate of one per week, and more than 2,700 soldiers are now enjoying the comforts of new bedroom suites. A further 85 buildings are scheduled to be completed next year. Further details about this major program can be found at www.aspiredefence.co.uk.
The award continues Harsco's steady presence in the global Infrastructure sector, where over the past two months the Company has announced new contracts in Europe, the U.S. and U.K. totaling more than $20 million. "Harsco's global market diversification and broad international balance are proving their significance in the current economic climate, as these several contracts serve to demonstrate,"
said Chairman and Chief Executive Officer Salvatore D. Fazzolari.
Harsco Corporation is one of the world's leading diversified industrial services companies, serving key industries that play a fundamental role in worldwide economic growth and development, including infrastructure, metals and railways. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.
Kenneth D. Julian
Eugene M. Truett