RNS Number : 0384I
Zirax PLC
13 November 2008
Zirax plc
('Zirax' or the 'Company')
ZIRAX secures a major new supply agreement in the Middle East
worth in excess of USD 12.5 million
Zirax plc ('Zirax' or the 'Company'), the AIM quoted speciality chemical company focused on the development, production and sale of oilfield process chemicals and de-icing solutions, is pleased to announce it has won a prestigious new contract worth in excess of USD 12.5 million. The contract is to supply proprietary grade PelletOil™ calcium chloride pellets to a leading Oil & Gas Producer in the Middle East, in co-operation with a significant Oil & Gas Service Provider.
The contract, which has been secured for an initial 3 year period, with an additional one year roll-over at the discretion of the customer, will mean that Zirax will supply approximately 14,000 Metric Tonnes (MT) per annum of product.
Won in the face of significant competition from other global manufacturers, Zirax is able to service this contract from either of its two main supply locations in Volgograd, Russia and Rosignano, Italy. With annualised calcium chloride pellet production expected to reach 170,000 MT by the middle of 2009, Zirax will further increase its capacity to target and commit to large, long term supply partnerships with similar end users.
Fenlon Dunphy, Zirax Chief Executive Officer said:
'We are very pleased to have secured this new and significant contract to the Middle East. A contract of this size and importance marks a major step in Zirax's position in the market. It also shows the importance of being able to supply from different locations. Apart from our calcium chloride pellet supply out of Russia and Italy for contracts such as this, we also have liquid supply from Austria.'
About Zirax
Zirax is a speciality chemical company manufacturing and supplying oilfield process chemicals and de-icing solutions to a global customer base. Zirax is the second largest supplier of calcium chloride pellets globally and the leading supplier in the Eastern Hemisphere. Zirax is quoted on AIM section of the London Stock Exchange (ticker: ZRX), is headquartered in London and has supply sources based in Western Europe and Russia. More information is available at http://www.zirax.com
Enquiries:
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Zirax
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Fenlon Dunphy, CEO
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T: +44 (0)20 7868 1694
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Hanson Westhouse Limited
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Tim Metcalfe
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T: +44 (0)20 7601 6100
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Richard Baty
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Metropol (UK) Limited
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Alexander Selegenev
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T: +44 (0)20 7439 6880
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Cardew Group
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Tim Robertson
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T: +44 (0)20 7930 0777
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David Roach
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Daniela Cormano
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This information is provided by RNS
The company news service from the London Stock Exchange
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