NEWARK, Del., Jan. 4, 2007 (PRIME NEWSWIRE) -- Innospec Inc. (Nasdaq:IOSP) today announced that it recently signed two new agreements with Petron Corporation, the largest oil company in the Philippines, which expand the scope of the companies' strategic partnership and create new opportunities for Innospec to better serve the dynamic Asia-Pacific region. Petron, which is 40% owned by Saudi Aramco, has used Innospec fuel additives in its world-class automotive fuels since 1995, and is one of Innospec's largest customers in the region.
Under the first agreement, Petron will construct and operate a new blending plant in Subic Bay Freeport that will serve the fuel additives requirements of Innospec's customers in the region, including Petron. The ten-year contract guarantees that Petron will be Innospec's exclusive toll blender in the region. The plant will serve as Innospec's regional supply hub, effectively bringing its products and services closer to Asian customers. Traditionally, Innospec products used in the region have been sourced from Europe.
The second agreement calls for Innospec to continue supplying Petron with customized fuel additives for the domestic market on an exclusive basis for the next ten years. In addition, Petron will provide certain technology support services and will help market Innospec's heavy fuel additives to potential customers in the region.
"We are very pleased to announce this expanded relationship with Petron, which underscores our recent success in working with major oil companies in the Southeast Asia region," said Paul W. Jennings, Innospec's President and Chief Executive Officer. "Having an Asian supply hub will create new efficiencies through logistics improvements, faster response times to a growing number of customers and the ability to better meet demand for customized products. These agreements also position us well to drive revenue growth in the region as we leverage Petron's customer and affiliate relationships. The market for fuel additives in Southeast Asia is huge, and can only get larger as significant new markets such as China and India open up."
"This strategic partnership will produce numerous synergies since it fuses Petron's technical services, marketing capability and strategic location with Innospec's fuel additive technologies and strong presence in the Asian region," said Khalid D. Al-Faddagh, Petron's President.
Petron will also be able to tap Innospec's customer base in the region to broaden the market for Petron's lubricant brands. Innospec serves a wide variety of power plants, refiners and manufacturers throughout the region, many of which are also users of lubricants. Petron-branded lubricants are now being sold in Cambodia and Indonesia as well as the Philippines. Aside from lubricants, Petron has been exporting petroleum products in the region, including industrial fuel oil, diesel and the petrochemical mixed xylene.
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with almost 1,000 employees in 23 countries. Innospec divides its operations into three distinct business areas: Fuel Specialties, Performance Chemicals, and Octane Additives. Together, the three businesses manufacture and supply a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. Innospec's Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. Innospec's Performance Chemicals business includes a range of companies that manufacture performance chemicals used in the manufacture of such items as personal care products, household detergents and crop protection chemicals as well as in the plastics, paper, metal plating and oil industries. Innospec's Octane Additives business is the world's only producer of tetra ethyl lead.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements which address operating performance, events or developments that we expect or anticipate will occur in the future. Although such statements are believed by management to be reasonable when made, caution should be exercised not to place undue reliance on forward-looking statements, which are subject to certain risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, actual results may differ materially from those expressed or implied by such forward-looking statements and assumptions. Risks, assumptions and uncertainties include, without limitation, the outcome of the Company's disputes with Ethyl and the impact on the Company's tetra ethyl lead business related thereto, changes in the terms of trading with significant customers or gain or loss thereof, the effects of changing government regulations and economic and market conditions, competition and changes in demand and business and legal risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations and market risks related to changes in interest rates and foreign exchange rates, government investigations, material fines or other penalties resulting from the Company's voluntary disclosure to the Office of Foreign Assets Control of the U.S. Department of the Treasury and other risks, uncertainties and assumptions identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and those identified in the Company's other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.