OT DVS - 10 millon+$ contract from Kuwait. coStock is very thin
Headline: Diversified Industries Ltd.: CFR Chemicals Enters Into Agency Agreement With Kuwait Company
Symbol: DVS
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2008) - Diversified Industries Ltd. ("Diversified") (TSX VENTURE:DVS) is pleased to announce that CFR Chemicals Inc. ("CFR") is currently in negotiations with a Kuwaiti company for a large contract to supply DVS 6000, their hydrogen sulphide scavenger product. In order to facilitate this contract and meet Kuwaiti state rules, CFR has concluded an Agency Agreement with TARTEEB General Trading & Contracting in the State of Kuwait. TARTEEB will represent CFR in this contractual process and all other chemical supply projects within the state of Kuwait.
Diversified and CFR President/CEO Darren Lamothe commented: "The company has been steadily gaining interest in our products from overseas markets. In the past two months there have been ongoing inquiries from Middle Eastern companies and our recent trips to Kuwait have further reinforced that. Securing an agency with a well recommended company such as TARTEEB is our first step in Kuwait. We are actively pursuing this overseas interest both in the Middle East and Europe and see these markets as an excellent opportunity to continue growing our scavenger business. These contracts alone could represent upwards of $10 million in annual sales of DVS 6000. There are also tremendous opportunities for all of our oil & gas chemicals and we anticipate our export business to grow exponentially over the next several years."
CFR is a supplier of specialty chemical products primarily to the oil and gas industry. Additional services include custom blending, storage of chemical products and third party logistics. CFR's growth is generated from management's ability to capitalize on opportunities in the chemical market and to provide competitive advantages to its clients. An integral part of this strategy is an ongoing program in R&D in new and unique chemical products.
CFR's main facility is in Kuusamo, located on 22-acres of industrial-zoned land, 26 kilometres west of Red Deer. The Kuusamo facility has over 50 storage tanks with a bulk storage capacity for numerous chemicals in excess of 7.5 million litres and is serviced by a 2,900 feet single track CN railway siding, upgraded to handle dangerous goods. In addition, CFR has other satellite locations within the province also serviced by rail siding.
Diversified currently owns 50% of CFR Chemicals Inc. with the option to purchase the remaining 50%. For more information visit
www.cfrchemicals.com.