Illinois Blender Snags Jordan Contract


High Velocity Alternative Energy has received a contract to sell up to $300,000 per month – $3.6 million annually – in private-label motor oil and antifreeze products to Talat Hussein Oil Trading Co. in Amman, Jordan.

According to High Velocitys Sept. 3 announcement, the C.O.D. orders are secured by a letter of credit issued by the Jordan Commercial Bank of Amman, Jordan. The distributor added that Hussein Oil indicated there is a great demand for U.S.-made lubricants and antifreeze products in Jordan. As a result of the strong demand from Talat Hussein Oil Trading Company, it is expected they will increase the amount of products purchased monthly as well as renew their contract yearly, High Velocity stated.

The transaction will be a very profitable one for us, said Robert Somerman, president of High Velocity Alternative Energy Corp. We look forward to a long relationship.

Headquartered in Bedford Park, Ill., High Velocity is a holding company that refines, blends, packages and distributes petroleum and related products to the automotive and manufacturing aftermarket. The company sells both direct and through regional distributors to retail outlets that include oil change shops, automotive aftermarket chains, gasoline stations, department stores and convenience stores.

In existence since 2004, High Velocity does business in the lubricants market mainly under the name of its wholly owned subsidiary, Petroleum Products Corp., housed in a 40,000-square-foot blending and packaging plant in Bedford Park. Blender and packager Alliance Petroleum Corp. most recently operated the Bedford Park plant before the companys acquisition by High Velocity in 2004.

We have over $25 million worth of potential sales to various distributors throughout the Midwest and overseas, Somerman told Lube Report, referring to contracts to sell lubricants, antifreeze and automotive chemicals. Fulfilling the orders is based upon the companys ability to raise enough capital to enable the purchase of raw materials.

Were a company that raises money through investors – were a public company – so one of the things were trying to do is have a growth plan, he continued. For us to succeed at our growth plan, we need to attract capital through private investors or through other institutions.

The company is also in the process of updating its financial information necessary to bring its annual and quarterly filings up to date. Somerman said it expects to complete the financial information within the next 45 to 60 days.

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