Companies: HYR   

Recycled transformer oil pioneer Hydrodec Group has won an order to supply its 'Superfine' product to Turkish group Innova Teknologi.

Chaired by young company backer and former City tycoon John Gunn, AIM-quoted Hydrodec is to supply 2.4 million litres of Superfine transformer oil in the first year of the agreement to Innova subsidiary Ceyhan for distribution in Turkey, described as 'one of the world's major centres for the manufacture of transformers'. Spokesmen say the deal will be worth between £1.2 million and £1.8 million to Hydrodec, which will also supply equipment to filter and dry the oil on arrival in Turkey and to test it for moisture before delivery to transformer makers and other customers.

The company says the deal should open new markets beyond Turkey for Hydrodec, which lost £1.1 million in the first half of the year, and Gunn hails it as a 'landmark' export order. He says supplies to export customers under the deal will take the company to 100 per cent capacity use of its Australian plant in New South Wales during 2008, earlier than previously expected.

According to Gunn, Hydrodec is making progress with its planned US production facility at Canton, Ohio, for which the company has already raised a £13.8 million convertible loan, to which Ludgate Environmental Fund, a spin-off from Gunn's Ludgate Investments, has contributed £3 million. Floated three years ago at 5p, shares in Hydrodec, which raised £2.3 million in June in a placing at 25p, now trade at 19.25p, up 1.25p today, and retain speculative appeal.

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HydroDec Group	AIM	£69.48m	25.75p	-1.25p
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Hydrodec breaks into big Turkish market			09/11/2007
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