NEW YORK — U.S. Global Steel Dust Inc., a recycler of electric-arc furnace dust, plans to break ground on a greenfield facility in the United States in the next few months, chief operating officer Barry Hamilton told AMM.

The Lausanne, Switzerland-based company is considering three locations in three states in the South and expects to select one by the end of March, he said. "We’re now looking at a shortlist of properties. We want to start building as soon as possible (and begin) operations by the end of the year." He declined to say what states the company is considering as negotiations are ongoing.

The planned facility—the company’s first operating plant in the United States—will include six muffle furnaces used to recycle electric-arc furnace dust and extract zinc oxide. It will run at an annual rate of 40,000 tons once production begins, Hamilton said, and the company plans to add another 30,000 tons per year in 2014.

U.S. Global Steel Dust plans to hire about 60 workers for the facility.

Demand for zinc oxide, which is used in a variety of end markets, including the tire, rubber and chemical industries, is improving, according to Hamilton. "Automotive is strong, and zinc oxide also goes into drilling chemicals used in the oil and gas industry, which is booming."

In addition, the company sees an opportunity to take some market share as Horsehead Holding Corp. is in the process of permanently shutting its Monaca, Pa., zinc facility, he said. "There’s increasing demand, and Horsehead is shutting its zinc oxide plant in Pennsylvania so there will be a gap in the market."

U.S. Global Steel Dust has been working to secure production facilities in Thailand and Saudi Arabia since 2011 (amm.com, May, 10, 2011).