Neste Oil has appointed new executive vice presidents to three divisions as part of a round of internal job rotations, effective Oct. 16, and created a new specialty products division that includes production and sale of base oils and gasoline components.
Neste is one of the key merchant players in the API Group III base oil market, and its Porvoo refinery has a Group III capacity of 4,670 barrels per day.
The company appointed Kimmo Rahkamo, currently executive vice president, biodiesel, as executive vice president of the new specialty products division. In addition to responsibility for production and sales of base oils and gasoline components, he will be responsible for Nestes stake in Nynas Petroleum, aproducer of bitumen and naphthenic specialty oils owned in collaboration with Petroleos de Venezuela S.A. Nynas plant in Nynashamn, Sweden, has capacity to make 7,800 barrels per day of naphthenic base oil.
Neste sees lots of growth opportunities in the base oil side of the business, said Osmo Kammonen, senior vice president, corporate communciations. Demand for high quality base oils is on the increase, Kammonen told Lube Report. Currently we already have a large market share of the top base oils commercial market, and we intend to capture our share of the growth as well. Announcements of our expansions will come as decisions are made. Automotive use is the main market driver for top base oils, he added.
The businesses that we have grouped under the new specialty products division have become sufficiently significant to form a separate division, said Risto Rinne, president and CEO. The changes that weve announced are also designed to give us better potential to implement our strategy focusing on cleaner traffic fuels and lubricants as we move forward.
Neste appointed Jorma Haavisto – currently vice president for Porvoo refinery – as executive vice president, oil refining, which the company has identified as one of its growth areas, along with biodiesel. He will be responsible for Neste Oils refineries at Porvoo and Naantali, feedstock supply for them, and petroleum product wholesale operations. Neste appointed Martti Ronkainen vice president, Porvoo refinery, effective Oct. 16, and Miika Eerola vice president, Naantali refinery, effective Jan. 1, 2008
The company appointed Sakari Toivola, who had been vice president, base oil, as executive vice president, oil retail, following Matti Peitsos retirement. Oil retail is responsible for retail sales and direct sales of Nestes petroleum products.