HYR.L Regulatory News (HYR)

28 Feb 2008 07:00

HydroDec Group plc28 February 2008 28th February 2008 HYDRODEC GROUP PLC SIGNIFICANT OFF-TAKE COMMITMENT FOR SUPERFINE OIL Hydrodec Group plc ("Hydrodec" or "the Company") is pleased to announce that ithas reached price agreement with, and secured a conditional commitment from, oneof the largest transformer oil buyers in the USA, to purchase more than 50% ofthe maximum production capacity of the new Canton, Ohio plant, to commenceimmediately once the plant is commissioned. The initial commitment covers thesecond half of 2008. This company has also expressed firm interest in increasingpurchase quantities up to a potential 8,000,000 US Gallons (30,000,000 litresper year) upon commissioning of the Laurel, Mississippi plant in 2009. Thesepurchase commitments are now only subject to Hydrodec's Superfine oil meetingcustomer specified quality standards which, based on the output of the existingAustralian plant, will be achieved on completion of the commissioning of theplants. Chairman John Gunn commented: "This outstanding result confirms the supportHydrodec is receiving in the US transformer oil market and underpins the rapidprogression of the US operations into profitability. The additional interest inimmediate uptake of further new capacity as it comes on line in Laurel,Mississippi demonstrates the value of our business plans, the competitiveposition of our Company and the forward demand that exists for our technologyand production capacity. We expect additional forward purchase agreements to besecured in the coming weeks. It is a tremendous achievement for a start-up technology to receive an off-takecommitment for more than half its immediate production capacity to a majorindustry player before production has commenced and clearly illustrates thestrong market for Superfine. The rapid uptake of production capacity in the USA creates an immediateopportunity for Hydrodec to commence planning new capacity for the USA marketover and above that scheduled for commissioning in 2008 and 2009." For further information please contact: John Gunn, ChairmanHydrodec Group plcTel: 0207 621 5774 Emma DavisCurve PRTel: 07764 197 003 Nick WestlakeAnthony RichardsonNumis SecuritiesTel: 0207 260 1000 This information is provided by RNS The company news service from the London Stock Exchange