HYR.L Regulatory News (HYR)

26 Feb 2007 07:01

HydroDec Group plc26 February 2007 HYDRODEC GROUP PLC SIGNIFCANT NEW SUPERFINE OIL CONTRACT WITH SCHNEIDER AUSTRALIA Hydrodec Group plc ("Hydrodec", AIM: HYR) announces Schneider Australia hasagreed in principle to allocate up to 75% of its annual new transformer oilpurchase in Australia, to Hydrodec's Superfine oil. This represents an expecteduptake of 3,000 litres of Superfine per day that represents up to 15% ofHydrodec's production capacity in Australia. Schneider Electric is a key manufacturer of distribution transformers inAustralia, supplying to major power utilities across the country and is one ofAustralia's larger transformer oil purchasers. This significant new contract follows a lengthy tender process that hasestablished terms and conditions including price, logistical arrangements andtechnical acceptance by Schneider's new transformer customers. The evaluationprocess undertaken by Schneider has also accredited Hydrodec as a potentialglobal supplier to Schneider Electric. The monthly purchase volumes will besubject to a brief ramp up period and implementation of quality assurancestandards consistent with Schneider customer requirements. Hydrodec Chairman John Gunn commented "The switch by Schneider Electric toHydrodec's Superfine transformer oil represents an important shift in the newtransformer oil market in Australia. It demonstrates the technical credentialsof Superfine for use in new transformer and associated equipment and confirmsthe competitiveness of Hydrodec's refining process in the new oil market. The Schneider tender process also entailed a review of Hydrodec's manufacturingand management (quality, environment and production) systems. Accreditation as asupplier under Schneider's global supplier evaluation regime highlights themanagement and production systems substance underlying Hydrodec's refiningtechnology. We look forward to reporting further bulk contracts in the very nearfuture." This information is provided by RNS The company news service from the London Stock Exchange