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November 18, 2015

Zochem Goes Global, Establishes Distribution Center in Rotterdam

Zochem Inc., one of the world’s premier zinc oxide producers, will embark on several initiatives for 2016 to increase its existing presence in global markets outside of North America.  The Company will be further expanding its capabilities to service customers and manage relationships directly as well as via strategic regional distributors, through a warehouse/distribution center soon to be opened in Rotterdam, The Netherlands.  This follows the recent investments to optimize production capacity, improve operational efficiency, and implement systems to achieve industry-leading customer service and logistics.

Based in Brampton, Ontario, the logistic hub of the Greater Toronto Area, the Company will continue to retain its position as a leading supplier in North America.  It now plans to further promote its products and capabilities to the rest of the global market.  Due to its reputation as one of the world’s leading producers of high purity zinc oxide, the Company has built a significant export presence and has a proven track record of supplying some of the most discerning customers widely throughout the world, including locations in Europe, South America, Africa, Middle East, India, China, and Southeast Asia.

With a capacity of 65,000 MT per year and fewer than 50 full-time employees, it is the largest and most efficient zinc oxide operation in the world.  In 2014, Zochem reported pre-tax earnings of $13.6 million on sales of $145 million.  The Zochem team has worked 44 consecutive months without a recordable injury and 15 consecutive months of six-sigma process control (zero off-spec).  The Company also recently completed a successful audit by U.S. FDA, confirming compliance with Good Manufacturing Practices for Active Pharmaceutical Ingredients (ICH-Q7A).

Zochem General Manager, Joshua Belczyk explains “In terms of timing, we intend to capitalize on the momentum of our recent internal execution as well as tailwinds from several external factors.  As in other industries, the global growth slowdown is threatening the viability of smaller, less efficient producers.  Zochem, however, is poised to continue to excel in all areas by building on existing relationships, superior economies of scale and product purity, our highly skilled team of employees, industry-leading strategy and execution, and a strong balance sheet.  ”

 

About Zochem

Horsehead Holding Corp. (“Horsehead”) (Nasdaq: ZINC) is the parent company of Zochem, Inc. (“Zochem”), a zinc oxide producer located in Brampton, Ontario; Horsehead Corporation, a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust; and The International Metals Reclamation Company, Inc. (“INMETCO”), a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America.  Horsehead, headquartered in Pittsburgh, PA, employs approximately 700 people and has seven facilities throughout the U.S. and Canada. Visit www.horsehead.net for more information.

Cautionary Statement about Forward-Looking Statements

This press release contains forward-looking statements, including statements about business outlook and future operating levels and historical results that may suggest trends for our business.  These statements are based on assumptions, estimates and information available to us at the time of this press release and are not guarantees of future performance. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking statements.  We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on our results of operations and financial condition. You should carefully read the factors described in the “Risk Factors” section of our filings with the Securities and Exchange Commission for a description of certain risks that could, among other things, cause our actual results to differ from these forward-looking statements.  All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

Contact info:

Ali Alavi

Vice President

Horsehead Holding Corp.

724.773.2212