About Enviri

Enviri Corporation is a market-leading, global provider of environmental solutions for industrial and specialty waste streams. Segments The company operates through two business segments: Harsco Environmental and Harsco Clean Earth. Harsco Environmental Harsco Environmental segment (HE) can trace its heritage back to the earliest efforts in industrial recycling and environmental resource management. Where others only saw waste and expense, the company saws opportunity and value nearly 100 years ago. HE was founded upon market insights, grounded in respect for the environment, efficient use of resources, and optimism for the future. HE is a premier, global provider of environmental services and material processing to the global steel and metals industries. HE partners with its global customer base to deliver production-critical on-site operational support and resource recovery services, through management of the company’s customers’ primary waste or byproduct streams. The company’s services support the metal manufacturing process, generating significant operational and financial efficiencies for its customers and allowing them to focus on their core steelmaking businesses. HE serves approximately 70 mill services customers at approximately 150 sites in approximately 30 countries. The company’s diversified customer base includes the largest steel producers in the regions where the company operates, serving a mix of mini-mill and integrated operations. In recent years, HE has greatly extended its reach, signing new services contracts in bellwether emerging markets like India, and further strengthening its footprint in the Americas and Europe. As a result, the company’s global portfolio is balanced and diversified, with foreign currency risk partially mitigated by the fact that its operating costs and revenues are regularly denominated in local currencies. In addition to providing critical services to its customers, the company provides zero-waste solutions for relevant waste or byproduct streams - an important component of its value proposition. The company repurposes processed material for alternative uses and / or convert this material into viable products to be sold in other markets via its ecoproducts offerings and capabilities. The company’s ecoproducts portfolio includes road and roofing materials, abrasives, agriculture products and aggregates. This expertise is increasingly important to its customers as environmental regulations increase and the marketplace grows more averse to landfilling waste. Customers and Service Contracts The company offers its customers a suite of more than 30 services, and its on-site work is performed under long-term contracts. These contracts typically include fixed fees or minimum billings, which de-risk the company’s investment during periods of economic weakness, and variable fees often linked to the amount of metal produced or waste processed at a site. The company’s variable fees under contracts are, importantly, not linked to steel prices. The company’s contract renewal rates are high, with many customer relationships that span decades. The company’s largest customers today include ArcelorMittal, Gerdau, Tata Steel Group, Tisco, and Hebei Iron and Steel Company. The company serves most of its major customers at multiple sites, often under multiple contracts. The length of the company’s customer relationships reflects its value proposition. Customers choose the company to achieve operational and financial efficiencies;concentrate their efforts on metal manufacturing and supporting end-market product demands; gain access to process innovations and technologies developed by the company; and leverage its downstream product applications and know-how. HE had one customer in each of the past three years that provided more than 10% of this segment's revenues, again under many long-term contracts at multiple sites. On-Site Services HE provides a broad range of services, most of which address its customers’ environmental challenges. In total, these services reduce both landfill waste and the carbon footprint of its customers’ sites. In 2022, on-site services represented approximately 85% of HE’s revenues. A summary of the company’s most significant services is as follows: Resource Recovery, Metal Recycling and Slag Optimization Resource recovery, metal recycling and slag optimization is the core component of the company’s service offerings. The company captures liquid steel waste or byproduct (slag) and transport it for cooling, treatment and conditioning. The company then recovers valuable metal from the waste-stream, which is returned to its customer in a form suitable for recycling through the customers’ manufacturing process. Finally, the residual non-metallic processed material is transformed into environmental products that create new and additional revenue streams. Scrap Management The company manages customer scrap inventories and upgrade scrap by making it cleaner and denser. Improved scrap characteristics reduce electricity usage which, combined with the usage of recycled material, provides sustainability benefits to its customers. Materials Handling and Logistics The company transports materials, including semi-finished and finished products, safely and efficiently for its customers. The company’s tracking technology also provides real-time analysis of material location, quantities and product quality. Meltshop and Furnace Services Meltshop and furnace services allow the molten metal production process to run smoothly and efficiently. These services include under-vessel cleaning and the removal of ladle slag (waste) and general melt shop debris. ECOPRODUCTS HE creates value-added downstream products from industrial waste-streams. The company’s experience in manufacturing these products and successfully penetrating relevant end-markets is an important differentiator for the company. These zero-waste solutions preserve its natural resources and reduce or eliminate landfill disposal. Ecoproducts in 2022 represented approximately 14% of HE’s revenues, and its major ecoproducts include the following: Road Surfacing and Materials The company’s slag-based asphalt product, developed and sold as SteelPhalt, maintains positive surface characteristics throughout the life of the road, allowing longer replacement intervals and lower maintenance costs. In 2022, SteelPhalt launched a carbon-negative asphalt product, using a renewable bio-based substance to bind the asphalt. This is an alternative to bitumen and reduces the product's carbon footprint. The company also sells a slag aggregate that is a sustainable and cost-effective alternative to natural stone. This aggregate is often used as unbound road base material for secondary roads and sub-base material elsewhere. Abrasives and Roofing Materials The company’s Reed Minerals business is among the largest roofing granule suppliers in the U.S., partnering with the country's leading shingle manufacturers. Nearly 100 years ago, it pioneered a process of recycling coal combustion waste from power plants. Through the company's proprietary process, it creates premium quality roofing granules that are a critical raw material in asphalt roofing shingles. Reed is also one of the largest U.S. manufacturers of abrasives, using coal, as well as copper and nickel slag, and crushed glass, for the surface preparation market. The company’s BLACK BEAUTY and SURE/CUT abrasives are well-recognized within the industry and are used as blast material to remove paint, rust, and other coatings from surfaces, prior to applying a new finish. Metallurgical Additives The company’s custom-designed steelmaking additives facilitate fluid slag formation in the steelmaking process, thus improving customer productivity and helping achieve the steel product specifications required for today’s premium applications. Agriculture and Turf Products The company produces soil conditioners and fertilizers, principally from stainless steel slag that optimize crop yields and turf performance. CrossOver and AgrowSil products are its leading silicon, calcium and magnesium-based product brands, sold mainly in the Americas. These products are formulated to address nutrient deficiencies and toxicity issues in soil, as well as to help plants withstand outside pressures and disease. Cement Additives Steel slag is naturally cementitious and commonly blended with other materials to produce environmentally-friendly, high-performing cement products. Cement made with slag aggregate can achieve permeabilities and other attributes that compare favorably to concrete made with conventional aggregates. Altek Group Altek is a UK-based manufacturer of market-leading products that enable aluminum producers and recyclers to manage and extract value from critical waste streams, reduce waste generation, and improve operating productivity. Growth Strategy The key elements of the company’s strategy are to further Penetrate Existing Sites. Given its broad services capabilities, it sees potential for add-on services contracts at existing sites; continue to pursue new services contracts in certain markets, particularly in emerging economies where out-sourcing opportunities are significant because of increased environmental awareness or where steel consumption (production) is set to grow; see opportunities to expand certain products businesses, and its investment in new SteelPhalt (road materials) plants in Europe is a recent example; and specifically focused on helping its customers solve their most pressing environmental challenges amid ever-increasing regulation. Harsco Clean Earth Harsco Clean Earth segment (CE) provides specialty waste processing, treatment, recycling, and beneficial reuse solutions for customers in the industrial, retail, healthcare, and construction industries across a variety of waste needs, including hazardous, non-hazardous, and contaminated soils and dredged materials. CE operates 18 Resource Conservation and Recovery Act (RCRA) Part B permitted treatment, storage, and disposal facilities (TSDFs), wastewater treatment facilities and supporting 10-day transfer facilities across the U.S., serving more than 90,000 customer locations, while utilizing a fleet of over 700 vehicles. It also holds a portfolio of more than 500 critically-important permits, and the waste handled by CE is recycled or beneficially reused. Specialty-waste permits have considerable value, and CE is positioned to take advantage of increasingly stringent regulations on the handling of this waste. These dynamics provide recurring revenues and support attractive underlying growth. CE also operates in a fragmented market where acquisition opportunities are likely to develop. As a result, it sees CE as a platform for growth as it continues to expand its focus as an environmental solutions company. Customers CE provides regulatory-compliant solutions with a high quality of customer service to a diverse set of customers. These customers include waste generators in numerous industries, including chemicals, power, aerospace, medical, retail and metals, as well as integrated waste companies and brokers. CE also services federal, state and local governments as well as developers linked to large infrastructure and redevelopment projects. CE had one customer in 2022 and 2021 that provided more than 10% of this segment's revenues. Lines Of Business Hazardous Waste CE provides testing, tracking, processing, recycling, and disposal services for hazardous waste and it operates 18 RCRA Part B permitted TSDFs and several wastewater processing permits that enable the company to process a variety of complex hazardous wastes, consisting of toxic, reactive and flammable materials, such as industrial wastewater, manufacturing sludge, oily-mixtures, chemicals, pesticides, asbestos, pharmaceutical waste, and landfill leachate with per- and polyfluoroalkyl substances (PFAS). The remaining facilities handle a limited number of other wastes, including electronics, batteries and light bulbs. These operations possess unique and differentiated processing technologies, such as applications for aerosol can, medical waste recycling, fuel blending, household hazardous waste and lead contaminated soils. Soil and Dredged Materials CE processes approximately 3.2 million tons per year of contaminated soil and 0.4 million cubic yards of dredged material at sixteen locations, which includes fixed-based locations and mobile plants. These soils are contaminated with heavy metals, PCBs, pesticides, polyfluoroalkyl substances (PFAS) or other chemicals, and the related clean-up work is often the result of infrastructure improvements, private redevelopment, industrial site remediation and/or underground storage tank removal. CE treats and recycles this soil through various processes, after which the material is suitable for beneficial reuse as construction fill material or landfill capping. CE also operates one facility to treat dredged material, the sediment accumulated at the bottom of waterways that is removed for environmental (clean-up) or maintenance (maintain depth) purposes. After treatment, these materials are also beneficially reused as fill material. In 2022, this line of business represented approximately 18% of CE’s revenues. Operations and Permits CE provides a suite of regulation-compliant treatment solutions for hazardous and non-hazardous wastes that can be tailored to meet customer-specific requirements. The solutions include soil remediation and recycling, including thermal desorption, dredged material stabilization and beneficial reuse, hazardous and non-hazardous waste stabilization and solidification, fuel blending, management and recycling, battery and electronic waste recycling, and secure electronic data destruction. Additionally, CE holds a portfolio of more than 500 process, treatment and operating permits. Seasonality Demand for services and solutions provided by HE are subject to seasonal changes related to weather conditions, inventory management through the steel-industry supply chain, and customer operating outages. The timing of these impacts varies by region, however, overall customer demand for HE across its global footprint tend to be strongest in the second quarter and third quarter of each year. As a result, demand for CE services tends to be weakest in the first and fourth quarters of each year (year ended December 31, 2022). Due to these factors, the company’s revenues and earnings are usually higher during the second and third quarters of each year relative to the first and fourth quarter of the year. Additionally, the company’s cash flows are also influenced by seasonality. The company’s cash flow from operations has historically been higher in the second half of the year, compared with the first half, due to working capital management, receivable collections during the fourth quarter as a result of higher revenues in preceding quarters and the timing of certain cash payments in the first half of the year, including for incentive compensation and pension contributions. Environmental Compliance The most significant U.S. federal environmental regulation that impacts the company’s business is the RCRA. The company is also subject to air and water quality control legislation in the U.S. and in foreign countries where it operates. The Clean Water Act regulates the discharge of pollutants into waterways and sewers in the U.S, and, where necessary, the company obtains and must comply with permits to discharge wastewater from its facilities. Similarly, the Clean Air Act in the U.S. controls emissions of pollutants into the air and requires permits for certain emissions. History The company was founded in 1853. It was incorporated in 1956. The company was formerly known as Harsco Corporation and changed its name to Enviri Corporation in June 2023.