Nynas opens office in Russia, expands capacity

ERJ staff report (DS)

moscow, Russia -- Swedish specialty oil company Nynas is opening a new sales office in Moscow. Nynas' existing depots close to Russia provide the company with the capacity to deliver products to the Russian market immediately. At the same time, a planned expansion of the refinery in Nynäshamn makes it possible to cope with increased sales to customers in the east.

Nynas believes that within five to seven years Russia will be an important European market for the company for sales of specialty oils to various industries. Sales may reach a level of 400 million SEK. The customers that Nynas is primarily targeting are manufacturers of electric transformers, the plastics and rubber industry and tyre manufacturers.

“This is a long-term initiative, and it feels a bit special to be able to invest at a time when so many people are being cautious. Now we must place even greater emphasis on sales of speciality oils in the east,” says Vice President Per Dahlstedt.

Deliveries to the tyre industry will be increasing over the next few years thanks to an EU decision to the effect that from the year 2010 highly aromatic oils, which are harmful to the environment, will be banned in the manufacturing of tyres. These must be replaced by cleaner, more highly refined oils. Nynas has already developed alternative, environmentally sound tyre oils, which will be produced and marketed through Nynas' global organisation. Now that tyre manufacturers are converting their production processes all over the world, including in Russia, Nynas is ready to deliver.

To further guarantee deliveries of naphthenic specialty oils to markets including Russia, Nynas has started to make investments in its refinery in Nynäshamn. Right now the company is investing more than half a billion SEK, and the plans are for the refinery to have more than doubled its production capacity once the investments are complete.

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Press release from Nynas