8th Nov 2007 07:01
HydroDec Group plc08 November 2007 8th November 2007 HYDRODEC GROUP PLC MAJOR NEW CONTRACT TO SUPPLY SUPERFINE OIL TO THE TURKISH MARKET Hydrodec Group plc ("Hydrodec" or "the Company") today announces a major exportorder for its Superfine transformer oil from Ceyhan Madeni Yag Ve Ticaret Ltd ('Ceyhan'), a special purpose subsidiary of the Turkish trading company InnovaTeknoloji, for distribution of Superfine in Turkey. Turkey is one of the world'smajor centres for the manufacture of transformers, with a number of well-knownglobal companies operating plants in the country. The agreement with Ceyhan provides for a minimum supply by Hydrodec of 2,400,000litres (46,000 litres a week) of Superfine transformer oil during the first yearof the agreement. The agreement confers exclusive distribution rights for theTurkey market to Ceyhan. The Agreement is effective immediately and the firstletter of credit is expected in the coming weeks. Hydrodec will also supplyequipment to filter and dry the oil upon arrival in Turkey and test the oil formoisture content prior to delivery to final customers. The end customers inTurkey will primarily be transformer manufacturers. Chairman John Gunn commented "This landmark export order confirms theinternational competitiveness of Superfine transformer oil. The off take ofAustralian production capacity by export customers will give Hydrodec 100%capacity in our Young, New South Wales plant in 2008, earlier than expected. Even more exciting is the confirmation that the market for our Australianoperations extends well outside Australia, creating the opportunity to examinethe expansion of our Young plant to become a significant international supplierof Superfine and establish a capacity to trade oil, both feedstock and finishedproduct, across the region. In parallel with increasing demand on Australian production, progress on ourfirst US facility in Canton Ohio remains on schedule and budget. Our proposed USproduction facilities have also received export inquiry in advance of start up.The increased capacity created by the US operations will deliver scale relatedproduction savings that will further improve our export and tradingcompetitiveness." For further information please contact: John Gunn, ChairmanHydrodec Group plcTel: 0207 621 5774 Emma DavisCurve PRTel: 07764 197 003 Nick WestlakeNumis SecuritiesTel: 0207 260 1000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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