Nynas to take over Shell's Harburg base oil plant in Germany

Nynas, based in Stockholm, Sweden, announced that the company has entered into an agreement with Shell to take over full control and responsibility for the Harburg base oil manufacturing plant and some associated refining facilities of the Harburg refinery in Hamburg, Germany. The agreement is subject to European Commission regulatory clearances and other customary closing conditions. The new production plant will be a core site for Nynas, with an annual production of specialty oils by up to 330,000 tons. This represents a 30% increase in the company’s production of specialty oils. With the strategic take-over of the Harburg production facilities, Nynas will grow with approximately 220 staff members over the next three years. “This is an important step forward in Nynas’ strategy to grow. It will allow us to quickly meet the growing demand from our customers globally,” said Nynas President Staffan Lennström. Over the next 24 months, the Harburg refinery will be converted into a stand-alone specialty oil refinery. A new hydrogen unit and an extensive conversion program will transform the plant into a world class stand-alone Naphthenic Specialty Products refinery, he said. The take-over is based on a 25-year lease agreement. Nynas will not take over any customers, sales or marketing assets from Shell. (December 12, 2011)