Hydrodec Progresses on Rerefinery Rebuild


Hydrodec said it plans for all six production trains at its rebuilt and expanded transformer oil refinery in Ohio to be operational starting May 20.

The London company on Monday issued a trading and projects update, including an update on its Canton, Ohio, plant rebuild and expansion project.

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Hydrodec is rebuilding the Canton transformer oil rerefinery after a fire destroyed the plants processing unit in December 2013, with two new trains and replacement of the four original trains.

The company said two expansion trains are progressing through completion of mechanical and electrical work, and the facilities are now available for operator training. Pre-commissioning will start on April 5, Hydrodec stated, with first production expected to commence May 10. Start-up of the trains that are being replaced will follow sequentially so that all six trains should be in production starting May 20.

Hydrodec expects the U.S. business to sell 5 million gallons of finished products in the United States in 2015, down slightly from 5.4 million gallons in 2013, having built a significant supply of feedstock since 2014s fourth quarter.

The company also plans to complete the co-location of its Australian operations from Young, New South Wales, in Australia, to Southern Oils Bomen lubricant oil rerefinery in Wagga Wagga at the end of March with full adoption of an tolling arrangement to start on April 1. The project included relocating the transformer oil processing units from Hydrodecs current site at Young. Hydrodec will continue to own the transformer oil rerefining plant and proprietary technology, and control all commercial activity of its Superfine brand transformer oil.

The project, which was subject to an extended planning process and submission process, creates a significant rerefining hub in New South Wales, which will not only benefit from operating efficiencies under a single operating structure, but also offer better logistics and other location advantages, Hydrodec stated.

Hydrodec Group posted $54.7 million in total income for 2014, up 36 percent from 2013 revenue, according to its audited preliminary results issued Monday. Total oil sales volumes for 2014 increased 31 percent to 48.6 million liters for 2014.

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