Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Angelos Papadimitriou to leave position with Pirelli after six months on job
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
      PTDA's Virtual Trade Show set for March 16
    • Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
      U.K. race series extends contract with Goodyear through 2026
      Air France extends deal with Michelin
    • Flexan receives FDA registration for Suzhou facility
      63rd Polyurethanes Technical Conference set for fall
      Biden redirects course on emissions standards
      3D mapping, navigation from Conti, others on cusp of mainstream
    • New systems solutions advance the sustainability of automotive weatherseals
      Arburg: 2021 Technology Days in June will run for 6 days
      R&D, Group 1 oils shift keeps Nynas busy
      Arburg boosts electric machine business with AMK acquisition
    • Flexan receives FDA registration for Suzhou facility
      Coi Rubber adding on to plant in China
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • Angelos Papadimitriou to leave position with Pirelli after six months on job
      Tero Peltomaki named Cimcorp CEO
      Synthomer CEO MacLean to step down by early 2022
      ARP Materials adds technical sales manager
    • Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
      Rubber industry associations focus agendas as Democrats take charge
      Mexico gives auto makers more time to meet USMCA rules
    • Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
      Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
    • Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Angelos Papadimitriou to leave position with Pirelli after six months on job
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
      PTDA's Virtual Trade Show set for March 16
    • Flexan receives FDA registration for Suzhou facility
      Coi Rubber adding on to plant in China
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
November 02, 2016 02:00 AM

Zochem focusing on better times ahead

Bruce Meyer
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Members from Zochem Inc. gather at the firm's Rubber Expo booth in Pittsburgh.

    PITTSBURGH—The parent of Zochem Inc. has emerged from Chapter 11 bankruptcy protection, and the general manager of the Brampton, Ontario-based producer of zinc oxide said operations for the business ran smoothly throughout the process.

    Zochem parent Horsehead Holding L.L.C. exited the Chapter 11 protection in September after the U.S. Bankruptcy Court for the District of Delaware confirmed its reorganization plan.

    Horsehead said in a statement that the plan eliminates substantially all of the company's debt; converts about $205 million of senior secured debt into equity in the reorganized firm; provides for the repayment of its debtor-in-possession credit facility; provides for repayment in full for creditors at Zochem; and provides for distribution of cash, equity and warrants for its other prepetition creditors.

    The company's new owners also have committed to fund additional equity to support the repair and restart of Horsehead's zinc production facility in Mooresboro, N.C., according to statement. Horsehead also converted from a Delaware-held corporation to a limited liability company. The names and structures of its major operating subsidiaries, including Zochem, remain unchanged.

    “With the bankruptcy process behind us, we can now turn our full attention to our operations and strategic plans,” Horsehead CEO James Hensler said in the statement.

    Delay in reorganization

    Zochem General Manager Joshua Belczyk said the process took a bit longer than expected, but his firm performed at a high rate during the time. This included a 12 percent rise in overall sales for the first half of 2016, nearly doubling international sales through September and maintaining high quality and service rate.

    Horsehead and three of its subsidiaries—including Zochem—filed for Chapter 11 in February, and he said the original plan was to emerge within a few months. But Belczyk said the delay was caused in part because the rapid rise in zinc prices this year increased the potential valuation of the company.

    “The courts wanted to make sure that all parties were being treated fairly, and that the increased valuation was taken into consideration,” he said. Belczyk discussed the company during the ACS Rubber Division's International Elastomer Conference and Expo, held Oct. 11-13 in Pittsburgh.

    Rather than being a public company, Horsehead and Zochem as a subsidiary now operate as a privately held company, controlled by a consortium of private investors, he said. The secured owners now are equity owners.

    Hensler remained as Horsehead CEO, and Belczyk said management for the most part remains unchanged at Zochem. He added that there was positive support from customers and vendors.

    “We were fortunate that the courts moved so swiftly and decisively to protect Zochem's interest and effectively carve us out of the restructuring process,” Belczyk said. “So we were able to proactively communicate that very quickly to customers and vendors, assuring them that first of all there would be no gaps in deliveries or production interruption, and also that all of our vendors would be paid in full. Those two things go a long way to reassuring these stakeholders.”

    Solid performance at Zochem

    International sales helped boost Zochem's first-half volume, with sales of about 32,000 metric tons representing more than 98 percent capacity utilization, according to Belczyk. Traditionally, the maker of zinc oxide—used in the rubber industry as an activator in the vulcanization process—saw about 90 percent of its sales in North America.

    But he said the company has been looking to change that, with moves including the opening of a distribution facility in the Netherlands earlier in the year and a recent trade visit to China.

    In the latter, Belczyk said the company has several longstanding direct relationships along with other sales through distribution. Some of the customers are specific to China while others are Chinese operations of multinationals that Zochem serves in other regions, and there was a need to keep formulations the same.

    Besides meeting its distributors in Shanghai and Qingdao, representatives attended a rubber and plastics trade show in Qingdao.

    “China is important as a zinc oxide demand center as well as a special zinc metal production market,” Belczyk said. “With the potential fluctuations and forecasts in prices of zinc metal and the evolving needs of the zinc oxide market, it's one that we want to make sure we keep our finger on the pulse of.”

    Like other industries, there is expected to be a consolidation of zinc oxide production in China, and the Zochem GM said few Chinese producers of the material can duplicate his firm's quality and systems.

    Keeping up with the added sales was a credit to the operations staff at Zochem's operations in Brampton. Belczyk said they set a record monthly production of 5,340 tons in May and a record for the second quarter of 15,700 tons. Quality ratings were maintained at Six Sigma levels of just under 100 percent, while on time and in full performance delivery improved to 95 percent.

    But while Zochem is running at close to capacity, that doesn't mean plans for an expansion necessarily is in the near future. Rather than try to add top line growth, he said Zochem wants to target the top 5-10 percent of high-purity zinc oxide users in the world.

    “By doing so we can achieve bottom line net income growth without really adding a ton of top line revenue or production capacity,” Belczyk said.

    Sales to tire and rubber goods producers account for slightly less than a third of Zochem's sales, he said, with specialty chemicals the largest end market segment.

    New tire plants could be a source of future growth as they ramp up to production. “We're in discussions with all of them as they start to get into making some sourcing decisions for materials,” Belczyk said.

    Related Articles
    Zochem parent completes Ch. 11 restructuring
    Rubber Division extends abstract deadline for spring meeting
    Water a critical market for chemicals
    Austin Rubber to open APX devulcanized rubber site
    TA Instruments adds to Discovery lines
    Barwell gear pump takes center stage
    Polymer maker G&E collaborates with CPA
    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION