Base Oil Report: As per information and reports, Hydrodec, the company that that reprocesses old industrial oils into Superfine transformer oil, has signed an “important agreement” with its Japanese partner, Kobelco Eco-Solutions (KES) of the Kobe Steel Group,for a 50/50 joint venture to exploit the Hydrodec technology in Japan and across the wider East Asian market.The move represents a major strategic breakthrough for the company following the approval in January this year of its technology by the Japanese Ministry of the Environment.Reportedly,the deal was the most significant development in Hydrodec’s history.The agreement’s extension to multiple plants and other territories illustrates the market place for the Hydrodec technology.The move will see the Japanese JV partners target not only Japan but also South Korea, Taiwan, China, India and Vietnam. They are planning to build the first plant in Japan by 2012 followed by a second site some time later. Hydrodec’s share of development and construction costs and working capital will be financed by debt secured on the project.Elsewhere, Hydrodec stated that its existing operations in Australia and the US were operating well, although US trading conditions remained challenging. Here, sales have been slower than expected during the first two months of the year, meaning that first quarter sales are expected to be broadly in line with those of the fourth quarter of 2009.The company noted that its working capital position had been affected by the sales dip and reduced trade credit terms from certain US feedstock suppliers. As a result, a number of financing options are being considered to support the development and working capital requirements of the business.Finally, the company has recruited a new chief operations officer who will be responsible for all aspects of the group’s transformer oil operations. It has also hired strategic advisory firm Moss Capital to work on its global development programme.