HydroDec Group plc Hydrodec takes control of N.American operations (6150L)
28 December 2018 - 6:00PM
UK Regulatory
TIDMHYR
RNS Number : 6150L
HydroDec Group plc
28 December 2018
28 December 2018
Hydrodec Group plc
("Hydrodec", the "Company" or the "Group")
Hydrodec Group plc takes operational control of North American
operations
Hydrodec Group plc (AIM:HYR), the cleantech industrial oil
re-refining group, announces that further to its recent strategic
review and as part of the realignment of its interests in the
United States, the Company has reached agreement with its long term
partners, G&S Oil Recycling ("G&S"), to increase Hydrodec's
interest in Hydrodec of North America ("HoNA") from 58% to 85%; to
restructure the governance and representation on the HoNA Board; to
increase plant and commercial efficiency at the Canton, Ohio
facility; and to provide Hydrodec with overall operational control.
Hydrodec will at the same time inject $3.8m of working capital into
the business.
Hydrodec is also now in the process of agreeing a new feedstock
supply agreement with G&S to deliver a fully aligned platform
for growth of the Company's US activities.
Lord Moynihan, Executive Chairman, commented: "I am pleased to
close the year with more material progress as we set Hydrodec on an
exciting course for the years to come. 2018 has seen the start of
the delivery of a major turnaround for the Company with a
comprehensive strategic review; a successful capital raise with
strong institutional support; and today's announcement of a
substantial increase in our ownership of Hydrodec's U.S.
activities, increasing our strategic, commercial and operational
flexibility in the region. These are the necessary building blocks
for Hydrodec to become the leading green re-refiner of transformer
oil in the world. With the generation of carbon credits that our
output provides, we are now in a position to deliver a strong
platform for both growth and profitability, and we look forward to
reporting on our further progress in 2019."
Hydrodec Group plc hydrodec@vigocomms.com
Lord Moynihan, Executive Chairman
David Dinwoodie, Chief Executive Officer
Arden Partners plc (Nominated Adviser and Broker) 0207 614 5900
Steve Douglas / Ciaran Walsh / Alex Penney - Corporate Finance
Paul Brotherhood - Equity Sales
Vigo Communications (PR adviser to Hydrodec) 020 7390 0230
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14% from 2015 to
2020. Spent oil is currently processed at two commercial plants
with distinct competitive advantage delivered through very high
recoveries (>99%), producing transformer oil that meets or
substantially exceeds applicable international standards at
competitive cost and without environmentally harmful emissions. The
process also eliminates PCBs, a toxic additive banned under
international regulations.
In 2016 Hydrodec received carbon credit approval from the
American Carbon Registry ("ACR"), enabling its product to be sold
with a carbon offset and creating an incremental revenue stream.
The Group is now generating carbon offsets through the re-refining
of used transformer oil, which would otherwise ordinarily be
incinerated or disposed of in an unsustainable manner. This is a
highly distinctive feature for the Group, confirming (as far as the
Board is aware) Hydrodec as the only oil re-refining business in
the world to receive carbon credits for its output. This is a
significant endorsement of the Company's proprietary technology and
standing as a leader in its field.
Hydrodec's current plants are located at Canton, Ohio, US and
Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
RAPFDLLLVLFEFBK
(END) Dow Jones Newswires
December 28, 2018 02:00 ET (07:00 GMT)
Hydrodec (LSE:HYR)
Historical Stock Chart
From Nov 2024 to Dec 2024
Hydrodec (LSE:HYR)
Historical Stock Chart
From Dec 2023 to Dec 2024
