Horsehead Industries Shopping for a Buyer

Horsehead Industries, Inc. is moving forward in the sale of its assets, continuing to improve the efficiency of its operations and expects to generate additional cash in the next 30 days through the disposition of noncore assets and other actions.

According to a report in Reuters, U.S. Zinc, a subsidiary of IMCO Recycling Inc., remains a potential buyer but that Horsehead is moving ahead with other interested parties as well.

Horsehead is the largest zinc producer in the United States, and is the largest recycler of zinc bearing materials in the world. It produces more than 165,000 tons of zinc products, and recycles more than 450,000 tons of electric furnace dust a year.

"We have had intensive discussions and negotiations with several interested acquirers and are confident that we will reach a successful conclusion to the sale process over the next 30 to 45 days," said Dave Carpenter, chairman and CEO. "We have had the support of our banks and constituents throughout and they remain actively involved in the process of completing the sale."

Horsehead has made exceptional improvements over the past year, including the conversion of its operations to 100 percent recycled raw material sources - the first and only major smelter in the world to achieve this position. The company has grown its market leading Electric Arc Furnace Dust (EAF Dust) recycling business and continued to meet all the needs of its zinc metal, zinc oxide, metal powders and zinc dust customers. “

The company also said that it is improving its cash flow through several cost saving initiatives, as well as the sale of other operations. The company has agreed to sell its Palmer Water Co. subsidiary and its Balmat mine.

"We have been able to actually improve the value of our major operating assets, and stabilize our cash flow, despite the high cost and difficulties of being in bankruptcy and low zinc prices. The company was able to achieve this because of our excellent and dedicated people. We are extremely proud of this accomplishment," said Jim Carpenter, president of Horsehead.