We have now completed our 2014 fiscal year at Petron and I am proud to report that we set all-time records in both sales and operating income.
Sales at Petron continued at a strong pace in 2014 even though there appears to be some softening in the copper, gold and iron ore markets.
We benefited on the sales line this year by adding some additional toll blending volume with one of our major oil customers. The new business started in our last quarter of 2014 and we will feel the full effects of this volume in 2015. We added two new raw material storage tanks to our Plant One expansion in 2014 to handle this increase in toll blend business.
In addition, the sales of our Premium 30 B series OGL for shovels and draglines continues to grow at an amazing clip both domestically and internationally. If the volumes we are projecting for 2015 start to materialize we will have to dedicate a mixing kettle just for this product line.
We have now outgrown our existing space at Petron and we are undertaking an engineering study to determine how many square feet we need to build on our property to address our space issues. Our preliminary study indicates we will have to add 8,000 more square feet in our warehouse and 12,000 square feet in our Plant. We expect to finalize our plans in the next couple of months and start construction in May with a November completion date.
These are exciting times at Petron and I am glad to be part of the team that is making it all happen.
I want to take this opportunity to thank all the Petron employees, vendors, distributors and customers for helping us to achieve all-time records in sales and profit for 2014.
John P. McHale