London based Hydrodec Group plc (AIM:HYR), a cleantech industrial oil re-refining group, has reached agreement with its long term partners G&S Oil Recycling to increase its interest in Hydrodec of North America (HoNA) from 58% to 85%.
The company, which has operations in the UK, US and Australia, said that the move comes further to its recent strategic review and as part of the realignment of its interests in the US.
Hydrodec said that it will now set about restructure the governance and representation on the HoNA Board and increase plant and commercial efficiency at the Canton, Ohio facility.
It also noted that the move provides it with overall operational control and that it plans to $3.8 million of working capital into the business.
The company added that it is also 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.”
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