Harsco’s (HSC) management deserves a lot of credit for the turnaround efforts that have brought the company’s metal waste processing and reclamation business back into solid profitability, and the market has given them a lot of the credit. Now management is confident enough in the business to begin expanding it again, and the company’s acquisition of Altek moves the company into the aluminum waste processing business – a logical expansion into a large adjacent market. While the company did indeed pay up for this opportunity, the returns as the company rolls out a new platform technology should make this a good deal for shareholders down the road.
From Steel To Aluminum
More than half of Harsco’s segment-level profits come from its Metals and Minerals business, where it provides outsourcing services to steel mill operators to help them manage the scrap, slag, and metal reclamation parts of the process. In particular, Harsco provides services that help steel companies reclaim high-value metal content from waste streams and byproducts, as well as processing slag into useful products and managing/disposing what remains.
