EU Commission approves Nynas takeover of base oil plant in Germany

Stockholm – Nynas has now received approval from the European Commission to take over production and responsibility for the base oil plant and associated production units at the Harburg refinery in Hamburg, Germany. The takeover of the first part of the refinery assets is targeted for January 1.

The new production plant will be a core site for Nynas with an annual production of specialty oils up to 350,000 tons. This represents a forty percent increase in the company’s supply capability of naphthenic specialty oils. With the takeover of the Harburg production facilities, Nynas will in the first phase take on approximately 90 Shell employees and this number will grow to 220 after two years.

“We signed this deal with Shell in 2011 and we are now satisfied that we have
received the approval by the European Commission. The addition of Harburg to Nynas supply system is an important step forward in Nynas’ growth strategy,” says Staffan Lennstrröm, CEO of Nynas. “We will increase volumes of all products in our current range of naphthenic specialty oils. With the new capacity we can reinforce our delivery performance and quickly meet the growing demand from our customers around the world.”

“Over the next 24 months Harburg will be converted into a world class, stand-alone specialty oil refinery. The high safety performance and professionalism demonstrated by the Harburg organisation and the welcoming attitude from the region have been important for taking this step,” Staffan Lennström continues.

From thhe beginning of next year, Nynas will start operating the base oil unit and associated refining facilities, i .e. bitumen assets, tank farms and jetties on thhe southern part. Approximately 90 people will be employed by Nynas from the start o f phase 1.

In preparation for phase 2, a hydrogen production plant will be built and operated by a third party supplier and Nynass will modify plants for further specialty oils production in the northern part.

After the conversion project, Nynas will take over all the operations of the new standalone specialty oilsrefinery.

With this agreement, Nynas will not take over any customers, sales or marketing
assets from Shell.

Nynas is a global technical leader and developer of premium specialty oils.The
company is well positioned to grow with the market, strengthen its current product lines and explore future opportunities for the sustainable use of oil.

In recent years,Nynas has opened sales offices and distribution terminals in fast-growing markets such as China, South Korea, India, Russia and several countries in Latin America.

Today, Nynas is a leading partner in areas such as transformer oils for the worlds electrical networks. The company is also taking advantage of the rapidly increasing demand for environmentally sound oils for tyre production. In Western Europe, Nynass is one of the leading suppliers of bitumen for asphalt production.

(September 2, 20113)