HydroDec Group plc First transformer oil sales from Canton (8892C)
October 21 2015 - 2:00AM
UK Regulatory
TIDMHYR
RNS Number : 8892C
HydroDec Group plc
21 October 2015
21 October 2015
Hydrodec Group plc
("Hydrodec" or the "Company")
First transformer oil sales from Canton and additional short
term working capital facility
Hydrodec Group plc (AIM: HYR) is pleased to announce a
successful return to the US transformer oil market, with strong
sales of SUPERFINE transformer oil to customers in the US and
Mexico. The rebuilt and expanded plant at Canton, Ohio has produced
transformer oil since 24 September and we expect to increase
production from the first four trains to operating design capacity
of c. 70,000 litres per day. The plant itself is on track to
deliver the 10 million litres of processed oil this year, as
previously advised, with the plant anticipated to be cash
generative from an operating perspective by the end of 2015.
In order to reinforce the Company's short term working capital
position during the ramp up of production at Canton, the Company
has entered into a GBP1.35 million short term working capital
facility agreement (the "Facility") with Andrew Black, a
Non-Executive Director of the Company. The Facility is for up to
GBP1.35 million with interest payable at 7 per cent per annum on
drawn-down funds, is on normal commercial terms and is repayable at
any time by the Company. The Facility is secured over the Company's
licence of and rights to develop the CEP lubricant oil re-refining
technology in the UK.
Ian Smale, Chief Executive Officer of Hydrodec commented: "We
are confident that the rebuilt and expanded plant has a unique
market proposition and will be well placed in 2016 to leverage the
production of the highest quality transformer oil produced in the
US, meeting all US and international standards. The additional
working capital facility reinforces the Company's short term
working capital position and ensures that Hydrodec's North American
business remains adequately funded during the important ramp up of
production from Canton."
For further information please contact:
020 3300
Hydrodec Group plc 1643
Ian Smale, Chief Executive
Chris Ellis, Chief Financial
Officer
James Hodges, General
Counsel and Company Secretary
Peel Hunt LLP (Nominated 020 7418
Adviser and Broker) 8900
Justin Jones
Mike Bell
Vigo Communications (PR 020 7016
adviser to Hydrodec) 9570
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. Spent oil is currently processed at two
commercial plants with distinct competitive advantage delivered
through very high recoveries (near 100%), producing 'as new' high
quality oils at competitive cost and without environmentally
harmful emissions. The process also completely eliminates PCBs, a
toxic additive banned under international regulations. Hydrodec's
plants are located at Canton, Ohio, US and Young, New South Wales,
Australia. In 2013, Hydrodec acquired the business and assets of
OSS Group, the UK's largest collector, consolidator and processor
of used lubricant oil and seller of processed fuel oil, with a
national network of oil storage and transfer stations. Used oil is
converted into processed fuel oil at OSS's plant at Stourport and
principally sold on to the UK quarry and power industry. In April
2015, Hydrodec further acquired the business and assets of Eco Oil,
a leading UK waste oil collector and supplier of recycled
industrial fuel oil into the power and road stone industries. It is
also one of four significant providers of waste management services
to the marine industry in the UK, specifically oily-water slops or
marine pollutant (MARPOL). In line with our stated intention to
develop a base oil re-refinery in the UK, we have an exclusive
licence agreement with California-based Chemical Engineering
Partners (CEP) to develop the CEP wiped-film evaporation and
hydrogenation technology in the UK as well as the basic engineering
for a 75 million litre per annum capacity base oil re-refinery.
The new transformer oil produced from the Canton plan meets the
US ASTM specification as verified by independent testing and,
subject to further tests, we expect this to meet all international
specifications and match the best oil available in the United
States.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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