28.10.2009

Harsco signs Scaffold rental agreement in China

Harsco, owner of SGB, Hünnebeck and Patent scaffold, has entered into a joint venture partnership for the rental of scaffolding, formwork and shoring services and equipment with Zhejiang Construction Materials and Equipment Company Limited one of the largest construction groups in China.

Zhejiang Construction has annual revenues in excess of $6 billion and is one of the largest construction companies in the country.

The joint venture will initially target major project opportunities in the commercial building, infrastructure and industrial plant maintenance sectors of Zhejiang Province on China’s east coast.

Harsco will hold a 70 percent of the equity in the new joint venture company, with operations expected to begin in the latter part of the first quarter of 2010.

The partnership will be based in Hangzhou, the capital of Zhejiang Province. The agreement was signed yesterday at an official ceremony in Hangzhou attended by U.S. secretary of commerce Gary Locke, ambassador Ronald Kirk and Zhejiang Provincial Governor Lu, Zushan.

Announcing the new relationship, Harsco chief executive Salvatore D. Fazzolari said: “This is an exciting new gateway for Harsco into one of the world’s most buoyant construction economies. We are delighted to be in partnership with a company whose size and stature rank among the very best in China and whose focus on supporting economic growth and development directly complements our own.”

“We believe that over the longer term, China has the potential to be a significant market for Harsco’s services and products. Although at this early stage it’s impossible to predict with certainty the potential revenue opportunity from this agreement and other opportunities we are considering.”