HARRISBURG, Pa., May 19, 2003 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that its Patent Construction Systems division has entered into a new, open-ended agreement with Northrop Grumman Corporation to provide scaffolding and related access services at its Gulfport, Mississippi shipyard, where some of the United States' newest and most advanced Naval ships are being constructed. Additional locations are also under discussion.
The agreement, Patent Construction Systems' first with Northrop Grumman for shipyard support services, is expected to generate annual revenues in excess of $250,000 over its duration, depending on activity levels. Patent will manage the supply of rental scaffolding and other access equipment at the shipyard to support a range of shipbuilding and repair operations. Patent's services include the use of its proprietary Scaffold Tracker(r) software, which will provide the shipyard with real-time inventory tracking and cost reporting for ongoing projects.
Among the ships being built at Gulfport is the all-new San Antonio-class amphibious assault ship, a 684-foot expeditionary force transport designed to carry a Navy crew of more than 400 and up to 800 Marines, along with advanced amphibious assault vehicles, hovercraft, and tilt-rotor aircraft. The fifth of 12 ships to be built in the San Antonio class will be the USS New York, named in honor of the victims of Sept. 11 and the citizens of New York. Displaying the motto "Never Forget," that ship will incorporate steel from the World Trade Center's Twin Towers in its bow, where the vessel cuts the water. Coincidentally, Patent Construction Systems continues to be involved in structural repairs and reconstruction at the World Trade Center site in New York City.
The Harsco division has also signed a contract to supply scaffolding to the U.S. Naval Submarine Base in King's Bay, Georgia where the Trident nuclear submarine USS Tennessee is undergoing exterior repainting and refurbishment. Several submarines are slated for similar maintenance over the next two years and beyond.
Robert Safier, Executive Vice President and General Manager for Patent Construction Systems, said the new contracts reflect Patent's strategic advancement into additional markets within the industrial sector. "With the recent volatility in non-residential construction, one of our core strategies has been to actively expand our access services role in the more predictable industrial maintenance arena -- such as powerplants, paper mills, and now these shipyards -- where large-scale, recurring needs for rental scaffolding are an essential ingredient to plant maintenance and new construction projects," Safier said. "These latest agreements underscore our ability to redeploy equipment to higher-performing job sites without the need for additional capital expenditure."
Harsco Corporation (NYSE:HSC) is a $2 billion diversified industrial services and products company employing approximately 17,500 people in more than 40 countries of operation. Harsco's market-leading businesses provide mill services, access services, gas and fluid control products, and other infrastructure products and services to customers worldwide. Additional information about Harsco, including its Patent Construction Systems division, can be found at www.harsco.com.
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