Posted on Sun, Oct. 19, 2003


Train equipment companies near contracts with China


Business Editor

Two Columbia-area companies hope Gov. Mark Sanford's trip to China this week means contracts worth millions for their businesses.

Harsco Track Technologies of West Columbia and ImageMap have been working for a year and a half on a deal to supply railway maintenance equipment to the Chinese Railroad Ministry.

The contract could be worth $70 million to Harsco and $18 million to ImageMap, according to U.S. Rep. Jim DeMint, R-S.C., who has urged the governor to meet with China's railroad minister during his trip.

The contract "would be the largest single order that we have received in the history of the company," said Robert Newman, president of Harsco Track Technologies. He wouldn't say specifically how much the contract was worth until it is signed.

Harsco would provide three types of railway maintenance machines for the country.

ImageMap provides high-tech railway track and wheel measurement equipment. It is based in Chicago but has its technical center in Columbia. Its president, Roger Tracy, was out of the country and unavailable for comment.

The contract could be signed Wednesday, when Newman meets with the railroad ministry in Beijing.

"The governor to my knowledge is planning to attend the meeting," Newman said.

Tracy, president of ImageMap, also is expected to attend the meeting.

"We are hoping that the governor's presence will precipitate a signing ceremony, but we don't know," Newman said.

But everything looks good for the deal to proceed, he said.

"We have an initialed contract. We have an agreement on a contract, and initialing simply represents that both parties agree with what has been arranged," Newman said.

Sanford and Newman were to leave for China today, although Newman is not part of the governor's party.

Clare Morris, communications director for the S.C. Department of Commerce, said the agency does not comment on pending deals.

"We're optimistic that we will have some good things to announce during this Asia trip, though we're still not sure of the details involving Harsco," she said.

The governor's trip to China is part of a Commerce Department trade mission that also includes secretary Bob Faith.

According to DeMint, the contract would "secure 200 to 300 existing high-tech manufacturing jobs and create up to 100 new jobs."

All Newman would say is that the contract could increase Harsco's local work force significantly.

Harsco has 1,000 employees worldwide and 400 to 500 in Columbia at any one time, depending on the workload.

The contract calls for Harsco to supply nine production grinders, large machines that repair long distances of track. It also would supply one switch and crossing grinder, which is a smaller machine designed to repair the rail where two tracks converge.

Also part of the deal is a stone blower, which is used to smooth tracks. It would be the first in China, Newman said.

Harsco has done business in China for several years. The company received a $5 million order in March for the country's first switch and crossing grinder.

Railroads are China's main mode of transportation, and the country has an enormous rail system.

The country has 33,534 route miles of track. Route miles do not include areas where more than one set of tracks run parallel.

To land the deal, Harsco enlisted the aid of DeMint, U.S. Rep. Joe Wilson, R-S.C., and other members of the S.C. congressional delegation, Newman said.

"We asked anybody who came and talked to us to help," Newman said.

If the contract is not signed Wednesday, it might possibly be signed the following week when U.S. Commerce secretary Don Evans travels to China.





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