18th Sep 2008 12:03
18 September 2008
HYDRODEC GROUP PLC ("Hydrodec" or the "Company")
NEW JAPANESE MEMORANDUM OF UNDERSTANDING SIGNED
Hydrodec is pleased to announce the signing of a new Memorandum of Understanding ("MOU") to progress the introduction of Hydrodec's technology and business to the Japanese market.
In June 2008, Hydrodec signed an MOU with Sanyu Plant Service Co (Sanyu). This has lead to the development of a more powerful MOU with Kobelco Eco-Solutions Co., Ltd. ("KES"), a majority owned subsidiary of Kobe Steel, and one of Japan's most respected industrial companies. Sanyu has withdrawn on amicable terms in favour of KES.
KES is the environmental business unit of the Kobe Steel Group, one of Japan's most prominent industrial companies. KES has extensive business in the treatment of PCB contaminated electrical equipment and transformer oil, has advanced technology and engineering capabilities in the environmental field, has strong research and development capabilities and has established and comprehensive links with the Japanese power industry.
The MOU with KES creates a binding agreement between the companies and commits Hydrodec exclusively to KES for the six month term of the agreement. The objectives of the agreement include finalisation of the feasibility of the Hydrodec business in Japan, establishment of terms under which the parties may enter into a cooperative business arrangement in Japan and documentation of the terms of conduct of a mutually acceptable master agreement between the parties.
Hydrodec, in partnership with KES and using KES' R&D facilities in Kobe, will shortly commence technology performance and demonstration trials for the Japanese Ministry for the Environment. This will formally commence the technology approvals process for Japan. KES has already successfully licensed several PCB treatment facilities in Japan.
Chairman John Gunn commented "We are very excited about the opportunity to work in Japan with a company of the calibre, reputation and standing of Kobelco. We believe that concluding the MOU with KES provides Hydrodec with a low risk, powerful entry to the Japanese market. Working with KES is another significant and high profile endorsement of the Hydrodec process and business model. As well as the Japanese market, this partnership could have significant implications for Hydrodec and the rest of the global transformer oil market."
For further information please contact:
Hydrodec Group plc 020 7621 5774
John Gunn, Chairman
Numis Securities Limited 020 7260 1000
Nominated adviser: Simon Blank
Corporate Broker: David Poutney/ Alex Ham
Curve PR 07764 197003
Emma Davis
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