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Hydrodec Group to inject US$3.8mln into US oil treatment unit

Hydrodec's management described it as "more material progress" as it continues efforts aimed at the group's turnaround
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Its stake in HoNA increases to 85% from 58%

Hydrodec Group Plc (LON:HYR) has revealed plans to restructure its part-owned Hydrodec of North America (HoNA) subsidiary, which will see the London-listed group inject US$3.8mln of capital and effectively take control of the business.

Its stake will increase to 85% from 58%.

The changes will also involve the restructuring of the governance and representation on the HoNA board. On the ground, the aim is to increase plant and commercial efficiency at the HoNA plant in Canton, Ohio.

Hydrodec is presently also working on a new feedstock supply agreement with long-term partner G&S Oil Recycling.

"I am pleased to close the year with more material progress as we set Hydrodec on an exciting course for the years to come,” said Lord Moynihan, Hydrodec executive chairman.

“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 US activities, increasing our strategic, commercial and operational flexibility in the region.”

He added: “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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