Nynas has received approval from the European Commission to
take over production and responsibility for the base oil plant
and associated production units at Shell's Harburg
refinery in Hamburg, Germany, the company said on Monday.
The takeover of the first part of the refinery assets is targeted for
January 1, 2014.
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 40% 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. 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," said
Staffan Lennström, CEO of Nynas.
"We will increase volumes of all products in our current range
of naphthenic specialty oils," he continued. "With the new
capacity we can reinforce our delivery performance and quickly
meet the growing demand from our customers around the
"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."
From the 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 the southern part. Approximately 90
people will be employed by Nynas from the start of phase 1.
In preparation for phase 2, a hydrogen production plant will
be built and operated by a third party supplier and Nynas will
modify plants for further specialty oils production in the
After the conversion project, Nynas will take over all
the operations of the new stand-alone specialty oils refinery.
With this agreement, Nynas will not take over any customers,
sales or marketing assets from Shell.