Nynas AB will reduce its direct sales presence in the Asia-Pacific region, the company said today in an announcement about creating a business footprint focused on customers in the naphthenic base oil and bitumen markets in Europe.
“In the Asia-Pacific region, Nynas will centralize and create a more efficient operation based out of the Singapore office,” the company said in a news release. “Nynas is now working with the relevant customers to achieve an orderly transition.”
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The company, one of the world’s largest naphthenic base oil producers and the only large European source, confirmed in March it was halting direct sales in North America, citing supply chain issues that make it difficult to compete there.
Today, Stockholm-based Nynas said it will concentrate direct sales activities in Europe, which has fewer suppliers. Its focus will also extend to India, the Middle East, Turkey and South Africa.
Nynas said its naphthenic business will refocus on a smaller profitable core business and on developing its sustainable offering. That will include focus on four areas: sustainable products, environment and climate change, health and safety, and people and society.
The company produces pale oils at two refineries in Europe. Its base oil plant in Nynashamn, Sweden, has capacity to make 7,600 barrels per day of naphthenic oils, while another plant in Harburg, Germany, has capacity of 6,300 b/d. At one time it also had marketing agreements that provided it access to naphthenic oils produced at Valero’s refinery in Three Rivers, Texas, and Refineria Isla, in Curacao, but its arrangement at the former facility lapsed, and the latter refinery closed temporarily.
Nynas emerged from court-protected reorganization in early 2021.