Finnish refiner Fortum announced this week an expansion that will boost capacity at its Porvoo, Finland, base oil plant by 30,000 metric tons per year. Officials said the company is undertaking the U.S. $20 million project because of rising demand for Group III base oils.
Fortum refers to the base stocks produced at Porvoo as enhanced high viscosity index oils.
The demand for EHVI type of base oils increases by 15 percent annually in Europe, which is Fortums most important market area, Executive Vice President of Base Oils Ilkka Poranen said. The demand is also on the increase elsewhere in the world, as quality requirements of the car industry are becoming stricter.
The expansion is scheduled to be completed by the autumn of 2005 and will raise capacity at Porvoo to 250,000 tons per year. Operating since 1997, the plant is one of the largest European producers of premium base oils. Fortum, which is based Keilaniemi, Finland, also produces polyalphaolefins at a plant in Belgium.