Harsco Rail Signs Contract with Saudi Railway Company

Rhea-AI Summary

Harsco Corporation (NYSE: HSC) announced a $31 million contract with Saudi Railway Company (SAR) for a 60-stone rail grinder, marking a significant milestone as their first contract in Saudi Arabia. Starting in 2022, Harsco Rail will also provide two years of grinding services. The company will establish a local presence with operators and mechanics in Saudi Arabia and a regional warehouse for parts. This collaboration underscores SAR's confidence in Harsco Rail’s technology and products, as Saudi Arabia continues to invest in its railway infrastructure as part of its Vision 2030 initiative.

Positive

• First contract with Saudi Railway Company valued at $31 million.
• Two years of grinding services to be provided starting in 2022.
• Local presence established in Saudi Arabia with dedicated operators and mechanics.

Negative

• None.

• USD $31 million order is the first grinder contract with Harsco Rail for Saudi Railway Company (SAR), which manages Saudi Arabia’s national railway network maintenance and renovation.
• Saudi Arabia joins the UK, Germany, Hungary, Sweden, and Italy, all of which have been using Harsco Rail grinders for years.

CAMP HILL, Pa., Sept. 29, 2022 (GLOBE NEWSWIRE) -- Harsco Corporation (NYSE: HSC) announced today that its rail division has signed a nearly $31-million contract with Saudi Railway Company (SAR) to provide it with a 60-stone rail grinder. Additionally, to support the immediate needs of the customer, Harsco Rail will provide two years of grinding services starting in 2022.

In demonstrating its commitment to SAR, a team of operators and mechanics based in Saudi Arabia will operate a 20 stone machine and handle all customer requests. Additionally, Harsco Rail will establish a local warehouse for spares and consumables for all customers in the region.

"Our continued relationship with the Saudi Arabia and Middle Eastern markets is a significant milestone for us," said Claus Heuschmid, Harsco Rail's Chief Operating Officer. "This contract demonstrates Saudi Railway Company's confidence in Harsco Rail as a valued supplier that delivers innovative and sustainable advanced products. We look forward to a long relationship with SAR, and we are very appreciative of the trust they have placed in us."

Harsco Rail's 60 stone grinder, which removes surface defects on rails and re-profiles the railhead on both rails, is one of the most technologically advanced grinders working today.

About Harsco Rail

Harsco Rail, a worldwide operating segment of Harsco Corporation, is a technological and innovative global supplier of railway track maintenance products and services. Harsco Rail provides expert engineering, vehicles and equipment, innovative technology, safety technology, dedicated parts and services, contracting services, and quality maintenance from nine main locations in the United States, the United Kingdom, Germany, India, Brazil, China, and Australia. Additional information can be found at www.harscorail.com.

About Harsco Corporation

Harsco Corporation (NYSE: HSC) is a global market leader providing environmental solutions for industrial and specialty waste streams, and innovative technologies for the rail sector. Based in Camp Hill, PA, the 12,000-employee company operates in more than 30 countries. Harsco's common stock is a component of the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information can be found at www.harsco.com.

About Saudi Railway Company

With Vision 2030 Saudi Arabia has ambitious plans to diversify its economy. The transportation and logistics sectors are crucial enablers and the backbone of this goal. The National Transportation and Logistics Strategy therefore aims to transform the country into a leading logistical hub for the entire region over the coming years. To ensure progress, the railway sector has received a lot of attention and seen substantial consolidation and re-organization over the last years, with SAR becoming the single most relevant corporation overlooking all operational activities of the railway sector and driving its transformation.

Investor Contact	Media Contact
David Martin	Jay Cooney
717.612.5628	717.730.3683
damartin@harsco.com	jcooney@harsco.com

FAQ

What is the significance of Harsco Corporation's recent contract with Saudi Railway Company?

The $31 million contract is Harsco's first with Saudi Railway Company and highlights the company's expanding presence in the Middle Eastern market.

What services will Harsco Rail provide to Saudi Railway Company?

Harsco Rail will supply a 60-stone rail grinder and offer two years of grinding services starting in 2022.

How does the contract with Saudi Railway Company affect Harsco's operations?

The contract enhances Harsco's operational footprint in Saudi Arabia and demonstrates confidence from the Saudi Railway Company in Harsco's products.

What are the implications of this contract on Harsco's stock (HSC)?

The contract could positively impact Harsco's stock by providing new revenue streams and reinforcing its market position in the rail sector.