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Horsehead Provides Update on Operations at PA Plant
07/30/2010 - Horsehead Holding Corp. announced that the zinc refinery at its Monaca, Pa., facility remains on temporary shutdown pending completion of an investigation and assessment of the damage. It could take several months for production capabilities in the refining facility to be fully restored.
Horsehead Holding Corp. provided an update on the incident that occurred at its Monaca, Pa., facility on July 22, which resulted in two fatalities in the plant's zinc oxide refining facility. The zinc refinery remains on temporary shutdown pending completion of an investigation and assessment of the damage.
Teams from the U.S. Occupational, Safety and Health Administration (OSHA) and the U.S. Chemical Safety & Hazard Investigation Board (CSB) are investigating the cause and the circumstances that may have contributed to this incident. Horsehead notes that it is “strongly committed” to the safety of its employees, contractors, and visitors and is cooperating fully with these investigations.
Horsehead and its insurance underwriters are conducting their own investigations into the cause and circumstances of this incident. The United Steel Workers union is also participating.
The company notes that a preliminary assessment of the damage indicates that each of the 10 columns used to produce zinc oxide and refined zinc metal in the refining facility will need to be rebuilt before production can be safely restarted using these columns. The rebuilding process will be delayed pending results from the accident investigation to assure that all safety measures are considered before production begins.
The investigations may take several weeks to complete, and it could take several months for production capabilities in the refining facility to be fully restored. The company decided that all employees at the Monaca facility will remain on the payroll and continue to receive benefits.
The company's President and CEO, Jim Hensler, said, "We are committed to safety and restoration of our operating capabilities and are working hard to provide support to our customers."
The smelting facility and other operations at the Monaca plant remain active but are operating at a reduced rate. The smelting facility is currently operating five of its six furnaces producing zinc metal. The operating level of the smelter will be adjusted based on market conditions and as operations at the zinc refining facility are restarted.
Horsehead expects that the cost of repairs and the loss of revenue from its zinc oxide sales during the rebuilding period, which historically have represented 40% of its revenues, will be partially offset by increased metal sales and will be subject to recovery under the company's business interruption and property insurance.
"Our thoughts and prayers continue to go out to the family and friends of Jim Taylor and Corey Keller who were fatally injured in this incident," said Hensler.
Horsehead Holding Corp. is the parent company of Horsehead Corp., a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust, and of The International Metals Reclamation Co. (INMETCO), a leading recycler of metals-bearing wastes and a processor of nickel-cadmium (NiCd) batteries in North America. Horsehead, headquartered in Pittsburgh, Pa., employs approximately 1000 people and has seven facilities throughout the U.S.
