Horsehead Corporation, a wholly owned subsidiary of Horsehead Holding Corp, announced that it plans to build its new, state of the art zinc and diversified metals production facility in Rutherford County, NC, near the municipality of Forest City.

The new plant is expected to employ approximately 250 people once it is fully operational.

Horsehead anticipates capital costs for the new plant to be more than USD 350 million and that the annual incremental EBITDA contribution from the new plant will be approximately USD 90 million to USD110 million, the majority of which will not be dependent on the price of zinc.

The new facility will utilize a lower cost, environmentally friendly solvent extraction and electrowinning technology to selectively remove and refine valuable metals from electric arc furnace based feed and other recycled materials into special high grade zinc and other metal concentrates containing silver, copper and lead.

Mr Jim Hensler president & CEO Horsehead said “We are excited to begin the project and are pleased with the support we have received in North Carolina at the state and local level. We look forward to becoming an important part of the local economy, providing construction jobs over the next two years and manufacturing jobs thereafter. This facility will produce zinc at much lower costs and provide opportunities for the Company not only to serve its traditional hot-dip-galvanizing market, but also to serve the broader market for special high-grade zinc and the continuous galvanizing market as well.”


Commenting on the numerous benefits the Company expects to realize, Hensler said, "We expect to increase operating efficiencies significantly while enhancing Horsehead's position as a globally competitive zinc producer and metals recycler. As a result, we hope to open new zinc markets with significant growth potential while further promoting the principles of sustainable development and product stewardship currently embodied in the Company's operations."

Horsehead has started the process of submitting environmental permit applications. Clearing and grading of the site will commence shortly. Construction of the facility could be completed as early as the third quarter of 2013. The existing smelter in Monaca, PA will continue to operate until the new plant is fully commissioned. Horsehead plans to continue non-smelter operations in Monaca and is exploring alternative uses for the facility.