LASSILA & TIKANOJA PLC COMPANY ANNOUNCEMENT 3 OCTOBER 2008 8.45 am
The waste oil re-refinery of joint venture L&T Recoil Oy will not be completed
until next spring, while earlier it was expected to be completed towards the
end of this year. Flaws have been detected in the piping design, which postpone
the completion with a few months.
After the completion of the plant test runs will be performed, and after that a
start-up phase will be started to maximize the degree of refining and the
recovery rate. The target for the year 2009 is to process approximately a third
of the plant's annual capacity, i.e. 20,000 tons.
In September 2006, Lassila & Tikanoja plc and Ecostream Oy established the
joint venture L&T Recoil Oy. L&T's share of ownership is 50%. L&T Recoil
produces base oil to be used as raw material for lubricating oil, fuel oil and
other oil products. The plant is situated in Hamina and its annual capacity is
60,000 tons.
In the joint venture, L&T is responsible for the procurement of raw material,
and Ecostream for the selling of the products to the oil market. The
procurement of raw material has succeeded well. Supply agreements have
practically eliminated the raw material risk.
The general increase in construction costs, stricter safety requirements and
improvement of the recovery rate compared to the original design level have
increased the costs of the construction. The capital expenditure totals around
EUR 45 million. Due to the higher recovery rate, the success in raw material
procurement and the strong rise in the base oil price, the calculated
profitability of the investment has not weakened, though the size of the
investment has exceeded the original one.
LASSILA & TIKANOJA PLC
Jari Sarjo
President and CEO
For additional information please contact IR Manager Keijo Keränen,
tel. +358 50 385 6957
Lassila & Tikanoja specialises in environmental management and property and
plant support services. L&T is operative in Finland, Sweden, Latvia, Russia and
Norway. Net sales in 2007 amounted to 555 million euro. L&T employs 9,500
persons, 2,400 of which are located outside Finland. L&T's shares are listed on
NASDAQ OMX Helsinki Ltd.
Distribution:
NASDAQ OMX
Major media
www.lassila-tikanoja.com