ZOCHEM, INC. Overview
Zochem describes itself as the largest dedicated producer of zinc oxide in North America. It manufactures exclusively by the French (indirect) process, in which special high-grade zinc metal is melted, vaporized and combusted to yield high-purity, consistent zinc oxide powder and pellets. Through two plants, one in Brampton, Ontario (in the community since 1974) and one in Dickson, Tennessee (commissioned 2013 as the first new North American zinc oxide plant in over 20 years), the company serves tire and rubber manufacturers, as well as chemical, lubricant-additive, agricultural micronutrient, ceramics, electronics (varistors and ferrites), coatings, plastics, pharmaceutical/USP and emerging zinc-battery customers. Its stated competitive pillars are certainty of supply, quality consistency and technical advisory service, supported by a North American warehousing and distribution network. Strategically it is building out low-carbon muffle-furnace capacity and moving into global and battery-related markets, notably through a 40% stake in Peru's listed zinc processor IEQSA (2023).
What the company does
Zochem converts refined zinc metal into zinc oxide (ZnO, CAS 1314-13-2) and sells it as powders and pellets in standard and customer-specified grades. Its safety data sheets list product purity at 99–100% ZnO. Zochem's technical data sheets describe its products as brilliant white powders made by the French (indirect) process. Its general-purpose Grade 400 meets the US FDA "Generally Recognized As Safe" listing at 21 CFR 182.8991, ASTM D79 and the EU End-of-Life Vehicle and RoHS heavy-metal requirements. Directory listings state the company manufactures 18 standard formulations and can produce custom grades in custom packaging.
Company's own description
Annual reports are not published because the company is private. The closest equivalent is the company's website and press releases. These present Zochem as the largest dedicated zinc oxide producer in North America and as a trusted advisor to customers in mature and emerging industries, making zinc oxide for applications from tires and rubber to pharmaceuticals and alternative batteries, using what it calls the efficient, low-CO2 French Process (Zochem.com, accessed Oct 2026). Legal-advisor releases from 2023 add that Zochem's North American warehousing and transport network supplies the automotive, industrial, chemical, agricultural, food, pharmaceutical and health sectors (Foley & Lardner, Sep 2023).
Business model and revenue model
| Revenue type | Estimated share | Basis |
|---|---|---|
| Product sales (zinc oxide powders/pellets) | ~100% | Nature of business; no other revenue lines disclosed |
| Services / licensing / subscription | Not publicly disclosed (believed immaterial) | — |
| Equity-accounted income from IEQSA (40%) | — | Stake acquired Aug 2023 |
The revenue model is almost entirely product sales: tonnage sales of zinc oxide priced on a zinc-metal-linked basis. Industry convention, which Horsehead's filings confirm for its zinc oxide business, is pricing at an LME zinc reference plus a conversion and grade premium. Zochem has no disclosed subscription, licensing or service revenue. It does offer technical advisory services (engineer consultations, samples, custom formulation), but these support product sales and are not monetized separately. Horsehead's FY2013 commentary on Zochem emphasized a "higher margin, lower volume" strategy and price increases, which shows that the premium over metal, not volume alone, drives profitability.
Value chain position
Zochem sits in the midstream of the zinc value chain. It buys refined special high-grade (SHG) zinc and, according to some directory descriptions, recycled zinc feed. It then performs thermal conversion to oxide and sells to industrial formulators and manufacturers. Upstream, it depends on zinc smelters and refiners (North American and imported SHG supply). Downstream, it sells to tire and rubber compounders, which have been its leading market since at least 2015, and to specialty chemical and other industrial users. Distribution runs both directly and through authorized distributors. Univar Solutions and Palmer Holland, for example, host Zochem SDS and TDS documents, which indicates distribution relationships.
Customer types and end-markets
| End-market | Application of ZnO | Evidence |
|---|---|---|
| Tires & rubber | Vulcanization activator | Leading market (ERJ, 2015) |
| Chemical intermediates | Feedstock for zinc chemicals | Craft/MarketScreener profiles |
| Oil additives & lubricants | ZDDP and related additives | Company product lists |
| Agriculture | Micronutrients, animal nutrition, fertilizers | Company/TDOT release |
| Electronics | Varistors, ferrites, surge arrestors | Company product lists |
| Paints & coatings, plastics, tapes & adhesives | Pigment, UV/stabilizer, curing | Company product lists |
| Ceramics & glass | Flux, glaze component | Company product lists |
| Pharmaceuticals / USP / cosmetics / food contact | Bulk active/excipient; GRAS food-contact uses | FDA NDC listings 69599-001 and 46372-0000 |
| Alternative batteries / energy storage | Zinc-based battery chemistries | Company site; IEQSA release, 2023 |
Independent characterization: Zochem is a focused, two-plant, single-product-family specialty chemical converter. Its strengths are North American supply proximity, regulatory approvals (FDA/USP, automotive OEM qualifications) and furnace engineering. Earnings are structurally exposed to tire-industry volumes and to the zinc metal price, and are only partly cushioned by pass-through pricing. The 2017 combination gave it scale leadership in North America; the 2023 IEQSA investment is its first step toward international diversification.
Strategy
Stated strategic themes (paraphrased from company releases)
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Certainty of quality, consistency and supply. Positioning as the dependable North American supplier with ample capacity (website tagline; ERJ 2015).
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French-process exclusivity. Only the indirect method is used, for purity and consistency.
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Low-carbon manufacturing leadership. Muffle furnaces with conductive refractory and low-NOx burners, optimized on an output-based intensity metric (tonnes ZnO per tCO2e) and using recyclable materials (Dickson expansion release).
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Emerging applications. Battery and energy storage, plus agriculture, automotive and specialty chemicals.
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Global reach. Entering global markets from a South American base through IEQSA.
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Stakeholder and community orientation. Positioning as neighbors to the Dickson and Brampton communities.
Initiatives over roughly the last 24–48 months
| Initiative | Date | Scope / target | Status | Source |
|---|---|---|---|---|
| Dickson muffle-furnace expansion | Announced 2022 | +15,000 t/yr; low-carbon, high-output design | Targeted online Q2 2023; completion not publicly confirmed | Rubber World |
| IEQSA 40% stake | Closed 17 Aug 2023 | Global logistics, new ZnO markets, battery zinc, technology sharing | Completed | Leaders League; Rubber World |
| Battery/energy-storage zinc products | 2023 onward | Cheap, biocompatible zinc-based backup batteries and storage; cites an IZA (2022) estimate of 150,000 t of zinc in storage batteries by 2030 | Development stage | Rubber World, 2023 |
| Digital: new website | 2023–24 | Customer self-service, technical information | Completed | Rubber World |
| Public-sector advocacy (Tennessee DOT) | c. 2024–25 | Promoting French-process ZnO tires for road safety | Ongoing | Rubber World |
| Commercial succession | Dec 2022 | Transition from Ed Smith to the next generation of sales leadership | Completed | Rubber World |
Medium-term financial targets and guidance are not publicly disclosed.
Products & Services
Zochem's portfolio consists of zinc oxide grades differentiated by purity, lead and heavy-metal content, surface area/particle size, physical form (powder vs. pellet) and regulatory approvals. Directory listings cite 18 standard formulations. Publicly accessible technical data sheets itemize only some of them. The table below lists every product that could be verified, with general descriptions where individual grade sheets are not public.
The company also claims its R&D work has produced zinc oxide with the lowest "retains" (screen residue) of any ZnO producer worldwide (Thomasnet company description). Pricing models are not publicly disclosed. Industry practice is metal-linked pricing plus premiums.
Products available through the IEQSA associate (not Zochem's own catalog): rolled zinc (foils, strips, sheets, coils), zinc alloys, zinc battery discs and alkaline-battery zinc powder, printing-industry zinc plates, electroplating anodes and zinc oxide (chemie.de company profile).
Product Portfolio
| Product / Grade | Description & key specs | Target customers | Approvals / notes | Source |
|---|---|---|---|---|
Grade 400 | Company's most popular general-use, high-quality French-process ZnO; brilliant white powder | Rubber, plastics, coatings, food-contact uses, general industrial | GMP 21 CFR 110; FDA GRAS 21 CFR 182.8991; ASTM D79; EU ELV 2000/53/EC; RoHS 2002/95/EC; WEEE | Grade 400 TDS (Palmer Holland) |
Grade 500 | General-use high-quality lower-lead ZnO powder | Same as above where lower Pb is specified | Same approvals as Grade 400 | Grade 500 TDS |
Other standard grades (remaining standard formulations) | Range of purity, surface-area and lead specifications, including rubber-grade, chemical-grade and electronic-grade oxides | Tire/rubber, chemical, ceramics, electronics | Individual grade sheets not publicly itemized | Thomasnet |
Pelletized ZnO | Dust-reduced pellet form for handling and dispersion | Tire and rubber compounders | Details not publicly disclosed | Craft/MarketScreener |
USP / pharmaceutical bulk ZnO | Bulk ingredient powder (1 kg/kg); FDA NDC labeler listings 69599-001 and 46372-0000 (e.g., 45 kg packaging) | Pharmaceutical and cosmetic formulators | FDA-listed bulk ingredient; NDC records show start-marketing dates in 2015 and listed end-marketing dates of 31 Dec 2025, with 2026 listing activity also shown; current status should be verified | PharmaCompass; HelloPharmacist NDC record |
Custom-specification ZnO | Products made to customer specifications that supersede the standard tables | OEM-qualified customers | Explicitly offered on TDSs | Grade 400/500 TDS |
Battery-oriented ZnO (development) | Zinc oxide for alternative / energy-storage batteries | Zinc battery developers | Strategic focus; commercial specs not disclosed | Company site; IEQSA release |
Packaging & logistics service | Bags, bulk bags, custom packaging; North American warehousing | All customers | Service supports product sales | Thomasnet; Foley & Lardner |
Technical advisory | Quotes, samples, engineer consultations, meetings | All customers | Non-monetized | Zochem.com |
Financial Narrative
Disclosure status
Zochem has been privately held since September 2016 (as part of the reorganized Horsehead/AZR) and has been owned by Zinc Acquisition Holdings since 2017. It publishes no financial statements. Consequently, for the last five fiscal years (FY2021–FY2025) the following are not publicly disclosed: revenue, gross profit, operating income, EBITDA, pre-tax income, net income, EPS, dividends, margins, balance sheet items, cash flows and all return/leverage ratios. No figure in this section is estimated for that period.
Table 6A: Most recent five fiscal years (FY2021–FY2025)
All income statement, balance sheet, cash flow and ratio metrics for FY2021–FY2025 are not publicly disclosed; the table is intentionally left without data rows to avoid fabrication.
Latest available audited data (Horsehead era, Brampton plant only)
Table 6B: Zochem segment financials (USD thousands; Horsehead Holding Corp. 10-K FY2015)
Table 6C: Capacity and scale indicators
Notes on Table 6C. Zero values mean "not applicable / not disclosed for that year" and must not be read as actual zeros. The Brampton FY2011 figure of about 50,000 short tons is an analyst back-calculation from the reported 44% expansion to 72,000 short tons and is not a disclosed number. The FY2023 group figure of 110,000 t is the 2017 capacity plus the announced 15,000 t Dickson furnace.
Commentary
The FY2013 to FY2014 jump reflects the strategic transfer of Monaca volume into Brampton, completed with the April 2014 Monaca closure. Pre-tax income rose 71% on an 85% sales increase, so margins compressed slightly as lower-premium tonnage was absorbed. FY2015 shows Zochem's sensitivity to zinc prices and volumes: tons fell 8.8%, LME zinc fell sharply during the year, and pre-tax income fell 58%. The pre-tax margin roughly halved to 4.4%. In both years the Brampton unit stayed profitable while Horsehead's core smelting segment lost heavily, about US$648M pre-tax in FY2015 including impairments. This supports management's later statement that Zochem was financially stable as a stand-alone subsidiary through the Chapter 11 process.
Post-2017, the combination with Dickson added a modern plant and is projected to have about doubled group revenue relative to the Horsehead-era Brampton standalone (US$250M projected for 2017 vs. US$127M Brampton FY2015). Some of that increase also reflects a higher zinc price in 2017. The 2022 decision to invest in a new 15,000 t furnace, and the 2023 equity investment in IEQSA, show that the owners have had capacity to fund growth capex and M&A. That points to positive cash generation, but quantitative confirmation is not available. Revenue CAGR, ROE, ROIC, leverage and coverage ratios cannot be computed.
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View Subscription PlansFinancial Detail
Group Entities
| Entity | Jurisdiction | Role | Source |
|---|---|---|---|
Zinc Acquisition Holdings LP | — | Ultimate private holding entity | Foley & Lardner, 2023 |
Zochem LLC ("Zochem South") | USA (Dickson, TN) | Dickson plant; corporate HQ; "responsible party" on SDS | SDS 2023 |
Zochem ULC ("Zochem North") | Canada (Brampton, ON) | Brampton plant; acquirer of record of the IEQSA stake | SDS 2023; Rubber World, 2023 |
Industrias Electro-Químicas S.A. (40% associate) | Peru (Lima Stock Exchange listed) | Zinc rolled products, alloys, battery zinc, anodes, ZnO | Leaders League, 2023 |
“—” = not publicly disclosed.
Revenue by Segment and Segment Margins & Growth (%)
| Metric | FY2013 | FY2014 | FY2015 |
|---|---|---|---|
Zochem segment net sales (USD K) | 78,342 | 144,685 | 127,100 |
Zochem segment pre-tax income (USD K) | 7,941 | 13,554 | 5,639 |
Zochem pre-tax margin (%) | 10.1 | 9.4 | 4.4 |
Zochem share of Horsehead consolidated net sales (%) | 17.7 | 31.9 | 27.0 |
Key Financials and Margin Analysis (%)
| Metric | FY2013 | FY2014 | FY2015 |
|---|---|---|---|
Net sales (USD K) | 78,342 | 144,685 | 127,100 |
Pre-tax income (USD K) | 7,941 | 13,554 | 5,639 |
Pre-tax margin (%) | 10.1 | 9.4 | 4.4 |
Key Financials
| Metric | FY2011 | FY2013 | FY2017 | FY2023 |
|---|---|---|---|---|
Brampton acquisition price paid by Horsehead (USD Mn) | 15.1 | 0 | 0 | 0 |
Brampton capacity (short tons per year) | 50,000 | 72,000 | 72,000 | 72,000 |
Group capacity (metric tonnes per year) | 0 | 0 | 95,000 | 110,000 |
Combined group sales (USD Mn, projected) | 0 | 0 | 250 | 0 |
Revenue by Region
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
IEQSA zinc-derived products revenue (USD Mn) | 132 | 164 | 123 | 120 | 116 |
Revenue by Region by Country
| Country | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Italy (USD Mn) | 22.05 | 29.14 | 19.74 | 16.21 | 16.85 |
France (USD Mn) | 21.41 | 28.28 | 15.34 | 14.2 | 14.82 |
Brazil (USD Mn) | 15.64 | 13.24 | 6.8 | 12.23 | 12.42 |
USA (USD Mn) | 10.14 | 13.24 | 12.49 | 13.85 | 11.55 |
Germany (USD Mn) | 8.73 | 14.06 | 11.06 | 6.38 | 7.9 |
Colombia (USD Mn) | 9.14 | 9.78 | 6.9 | 6.24 | 6.3 |
Morocco (USD Mn) | 2.08 | 2.45 | 1.48 | 1.46 | 5.92 |
Peru (USD Mn) | 6.04 | 6.64 | 6.06 | 5.05 | 5.26 |
Others (USD Mn) | 10.1 | 10.15 | 11.75 | 6.67 | 6.86 |
Capital Markets
| Item | Status |
|---|---|
Share price performance (1/3/5-year) | Not applicable (private) |
Credit ratings (Moody's/S&P/Fitch) | Not rated / not disclosed |
Historical financing | US$15M Zochem Facility (Dec 2012, Horsehead era) |
Income Statement
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
IEQSA revenue, 40% attributable share (USD Mn) | 52.8 | 65.6 | 49.2 | 48 | 46.4 |
Analyst Conclusions
Management guidance: none publicly disclosed. There is no consensus.
Bull case
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Scale and qualifications: about 88% of North American volume approved at the 2017 combination creates high switching barriers.
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Capacity growth (+15,000 t) and low-carbon positioning could capture near-shored and green-premium demand.
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The IEQSA stake and battery-zinc optionality give access to an addressable market of 150,000 t of zinc by 2030.
Bear case
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Margins were thin and volatile in disclosed years (4.4% pre-tax in FY2015).
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Import pressure from China, combined with tariff exemptions, could compress premiums.
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The associate's revenue has declined roughly 29% from its FY2022 peak, and the battery market remains unproven.
Catalysts and monitorables (next 12 months): confirmation of the Dickson furnace's commissioning and utilization; IEQSA's FY2026 results; US–Canada trade measures affecting Brampton's exports; tire production trends; zinc price direction; renewal status of the FDA NDC listings; any refinancing or ownership change at Zinc Acquisition Holdings.
Analyst verdict:
Zochem is not the public company the request assumed. It is a privately owned, focused North American zinc oxide specialist whose last audited figures date from the Horsehead era. That record nonetheless shows a business that stayed profitable through its parent's collapse: pre-tax income of US$7.9M, US$13.6M and US$5.6M in FY2013–15, while Horsehead's smelting operations generated very large losses. The 2017 combination of Zinc Oxide LLC's modern Dickson plant with the historic Brampton operation created the region's leading dedicated producer, with about 95,000 t of capacity and an estimated US$250M of revenue at the time. Ownership has since reinvested in capacity (a 15,000 t low-carbon furnace) and taken a measured international step through the 40% IEQSA stake.
The investment case, for any prospective lender, acquirer or counterparty, rests on durable customer qualifications and supply reliability in an industry where requalification is costly, and on the credibility of its low-carbon French-process positioning. The risks are equally clear: single-product concentration, commodity-linked margins, tire-cycle exposure and growing import competition. The battery opportunity is real but early. IEQSA's declining revenue (US$164M in FY2022 to US$116M in FY2025) means the Peruvian stake has not yet proven accretive.
On balance, Zochem appears to be a stable, strategically well-positioned regional leader with moderate cyclical risk. The absence of current financial disclosure is the binding constraint on any firmer judgment. Counterparties should seek audited statements, capacity utilization data and an update on the Dickson expansion before forming a credit or valuation view. Ratings: Business quality, above average. Transparency, low. Cyclical risk, moderate-to-high. Strategic optionality, moderate.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | Education |
|---|---|---|---|
Mohit ("Mo") Sharma | President & CEO, Zochem LLC and Zochem ULC | Joined 2013 as director of operations, then general manager at Brampton; appointed President & CEO effective 15 Nov (c. 2019) | BASc Chemical Engineering, University of Waterloo; MBA, Richard Ivey School of Business |
Russ Robinson | Chairman (per directory listings); former CEO of Zinc Oxide LLC (2017) | Son of U.S. Zinc founder Jerome Robinson; CEO of Metaleurop (2002–04); founded Steel Dust Recycling (2006, sold to Zinc Nacional in 2009) and Global Steel Dust (2010) | — |
Ron Crittendon | Former President & CEO; co-founder of the parent company; moved to new business development | Led the company until succeeded by Sharma | — |
Seth Johnson | Director of Global Sales and Marketing | Led the website relaunch; succession lead for Ed Smith's commercial role | — |
Ed Smith | Former Vice President / SVP Sales & Marketing (retired 31 Dec 2022) | 30+ years in zinc oxide; Zinc Oxide LLC founding partner (2013); built the distribution network | — |
Ken Williams | CFO & VP Administration (directory listing) | — | — |
Barry Harms | CFO (directory listing) | — | — |
“—” = not publicly disclosed.
Major Shareholders
| Holder | Stake | Source |
|---|---|---|
Zinc Acquisition Holdings LP | 100% of Zochem ULC / Zochem LLC (implied) | Foley & Lardner, 2023 |
Zinc Acquisition Holdings partners | Not publicly disclosed; releases refer to co-founders and co-owners, including Ron Crittendon | ERJ (CEO transition) |
Institutional holders | Not applicable (private) | — |
Competitive Landscape
Key Competitors
| Competitor | HQ | Segment overlap | Positioning vs. Zochem |
|---|---|---|---|
U.S. Zinc | USA | French-process ZnO, North America | Principal domestic rival; multiple US plants |
EverZinc | Belgium | Global ZnO and zinc powders; FDA-listed ZnO | Global scale; pharma and battery zinc |
Grillo-Werke | Germany | European ZnO | Imports and European competition |
Silox | Belgium/Spain/Mexico | ZnO incl. Latin America | Competitor in Mexico and Latin America |
Pan-Continental Chemical | Taiwan | ZnO for rubber and electronics | Asian import competition |
Korea Zinc | South Korea | Zinc metal (Zochem feedstock source) and ZnO | Integrated supplier and competitor |
Huta Oława | Poland | ZnO | European supply |
Indo Lysaght | India | ZnO | Emerging-market supply |
Chinese ZnO producers (aggregate) | China | Commodity and rubber-grade ZnO | Low-cost import pressure |
BASF, Sumitomo, Croda, Symrise (pharma/cosmetic ZnO) | Various | USP/cosmetic ZnO | High-end competition in cosmetics and pharma |
Competitor Detail
| Metric | Zochem |
|---|---|
Revenue | ~US$250M (2017 projection only) |
Margins | 4.4–10.1% pre-tax (FY2013–15, Brampton only) |
Recent Developments
Zochem issues few press releases. Web searches for 2025–2026 Zochem-specific news returned no verifiable dated corporate announcements within the 18-month window.
