HYR.L Regulatory News (HYR)

17 May 2007 13:08

HydroDec Group plc17 May 2007 17 May 2007 HYDRODEC GROUP PLC ("Hydrodec" or "the Company") HYDRODEC DETERMINES LOCATION FOR SECOND US PLANT Hydrodec is pleased to announce that it has located two sites in the city ofLaurel, Mississippi as likely locations for its second USA transformer oiltreatment site. Negotiations are continuing for the incentives that will bemade available to the Company so that it can sign a definitive agreement to belocated in Laurel. It is likely that this period of negotiation will takeapproximately 3 months when a final announcement will be made. Furthermore, the Company is pleased to confirm the announcement by Canton (Ohio)Regional Chamber of Commerce describing the location of Hydrodec's first USfacility within the Stein Industrial Park in Canton. Hydrodec will benefit froma range of incentives and grants provided by the state of Ohio and Canton to avalue in excess of $1.5million. It is planned that the plants in the USA willeach have a production capacity in excess of 80,000 litres of Superfinetransformer oil per day and once they are both operating it will represent aneight fold increase in Hydrodec's existing Superfine production capacity. John Gunn, Chairman, commented, "We have been delighted to confirm ourassumptions that the market in the United States was very open to accepting oursuperfine product. We have identified a considerable number of utilities andtransformer manufacturers who have expressed sufficient interest for us toconclude that a second location in the south of the country will be required.The Company will continue to investigate the market to ascertain its fullpotential for this product." - Ends - For further information please contact: John Gunn, ChairmanHydrodec Group plcTel: 020 7236 6236 Emma DavisCurve PRTel: 07764 197 003emma@curvepr.co.uk Nick WestlakeDavid PoutneyNumis Securities LtdTel: 0207 260 1000 This information is provided by RNS The company news service from the London Stock Exchange