Dor Chemicals will produce fuel additive MTBE for Oil Refineries.
Israel Corporation (TASE: ILCO) subsidiary Oil Refineries Ltd. (TASE:ORL) has signed a new contract with Dor Chemicals Ltd. (TASE: DORC) for the refining and production of fuel additive Methyl tert-butyl ether (MTBE) by Dor Chemicals made from C4 crack mixture supplied by Oil Refineries.
Oil Refineries will pay Dor Chemicals a fixed monthly fee for the MTBE refining and production. MTBE boosts the octane of gasoline.
Dor Chemicals stated that the new contract will reduce its revenue by NIS 4 million a year because it will not sell the MTBE produced. Sale of MTBE to Oil Refineries accounted for 30% of Dor Chemicals' revenue in 2006, 17% of its revenue in 2007, and 19% in 2008.
Oil Refineries' share fell 1.3% today to NIS 1.03, while Dor Chemicals' share rose 0.3% to NIS 6.47.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009
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