11 Nov 2014 07:00
11 November 2014
Hydrodec Group plc
("Hydrodec" or the "Company")
Resolution of Insurance Claim
Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, is pleased to announce that the Company and its insurers have now settled the Company's insurance claim arising from the incident in Canton in December 2013.
The total gross value of the claim has been agreed at US$20 million, which after deduction of property damage and business interruption excesses of US$1.25 million in aggregate, will result in total cash payments of US$18.75 million to the Company. Hydrodec will therefore receive a further US$3.05 million in addition to the interim payments of US$15.7 million received to date.
Progress on the Canton plant expansion and rebuilding project continues and remains on target to have all six trains commissioned and operational by the end of Q1 2015.
Commenting on the outcome, Ian Smale, Chief Executive Officer of Hydrodec said: "We are extremely pleased that the insurance claim is now resolved and with the outcome of the negotiations. This now enables the Company to move beyond a difficult chapter in our history and allows us to rebuild with confidence, fully funded, to recapture the growth, momentum and potential of the US transformer oil business interrupted by the incident in December 2013."
For further information please contact:
Hydrodec Group plc |
| 020 7907 9220 |
Ian Smale, Chief Executive Chris Ellis, Chief Financial Officer James Hodges, General Counsel and Company Secretary
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Peel Hunt LLP (Nominated Adviser and Broker) |
| 020 7418 8900 |
Justin Jones Mike Bell
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Vigo Communications (PR adviser to Hydrodec) |
| 020 7016 9570 |
Patrick d'Ancona Chris McMahon |
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Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ 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. Hydrodec recently 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, currently serviced by a fleet of more than 90 trucks which collect used oil and other garage workshop waste from over 30,000 customers. 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.
Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.