"Shell, Mobil Oil and Transpacific Industries Form Joint Venture to Operate Used Oil Refinery in Australia"
ALPINE, Utah--(BUSINESS WIRE)--July 18, 1997--Transpacific Industries Pty. Ltd., Shell Australia Ltd. and Mobil Oil Australia Ltd. have announced the formation of a new Australian national used oil collection, recycling and refining company, Nationwide Oil Pty. Ltd.
Transpacific Industries will own 50 percent of Nationwide Oil, and Shell and Mobil each will hold a 25 percent share of the joint venture.
Nationwide Oil is constructing a used oil re-refining plant for Sydney, Australia, that will have a capacity to process about 24,000 gallons per day (about 91,000 liters per day) of used oil through a process patented by Interline Resources Corp. (AMEX:IRC.EC) of the United States. This refinery is scheduled for start up by the end of the year.
According to Nationwide Oil, Interline's technology will revolutionize the application of waste oil processing in Australia.
Nationwide Oil was established by combining existing used oil collection/recycling companies into one national organization with operations initially in Queensland, New South Wales, Victoria and West Australia.
In September 1996, Interline signed an exclusive purchase agreement with Transpacific for all of Australia. Under the terms of the agreement, Transpacific purchased a 24,000-gallon-per-day plant from Interline.
To maintain its exclusivity for Australia, Transpacific must order at least one more 24,000-gallon-per-day plant within two years. The purchase agreement also discusses the possibility of construction of a third or more refineries, depending on market conditions.
"We welcome the involvement of Shell and Mobil with our technology," said Michael R. Williams, president of Interline. "We're excited that they have decided to join Transpacific in supporting our technology for Nationwide Oil's used oil recycling strategy. We view this as a significant development for Interline."
"We believe there is a strong market need for 'cradle to grave' waste management and lube recycling service in Australia," said Terry Peabody, chairman of Transpacific Industries.
"Customers are looking for products that make not only financial sense but are also environmentally responsible. Nationwide Oil will be strongly placed to meet these needs with our plant and to implement a total used oil recycling strategy on an Australia-wide basis."
"Transpacific, Shell Australia and Mobil Oil Australia will create a successful environment for managing and recycling used oil, because these companies bring expertise in used oil collection, refinery operation and finished product marketing," said Williams.
The Interline used oil refining process provides an environmental solution to used oil disposal problems by removing physical and chemical contaminants from used oil through a solvent extraction system.
The process yields a lubricating base oil or industrial fuels. The by-products from the used oil can be used as an asphalt modifier.
For more information about Interline Resources, visit the company's home page at interlineresources.com on the Internet.
Contact:
Interline Resources Corp., Alpine
Mark Fredrickson, 801/756-3031
FAX 801/756-8843
E-mail: ircinfo@interlineresources.com
More news for referenced ticker symbols: IRC, IRC.EC, and related industries: environmental, oil/energy.
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