Long-term, reliable alternatives for the tyre industry

But one thing is certain, and that is that I am very grateful that we at Nynas are both fairly cautious and also take a very long-term view of things. For various reasons we have not taken part in the general acquisitions and investment fever that has been rife over the last few years. Instead we have concentrated on getting good financial results and making well-financed investments that we can see the direct benefits of. This means that we have an economically stable foundation to stand on when the world around us shakes. It also means we can continue with our long-planned expansion.

The concept of having a long-term view leads me on to another subject. That is the transformation of the tyre industry, which is facing a shift in technology when aromatic extracts are banned in Europe next year. About a million tonnes of aromatic extract will have to be replaced per year.

There are three main choices for replacements, of which heavy naphthenics is one. Without getting into detailed discussions, I can say that the naphthenic products are excellent alternatives from a technical point of view.

But there is one thing that is often forgotten. That is that our products are tailor-made for their purpose and not as a by-product of other refining activities in a base oil industry where major structural changes are underway.

So, whilst I cannot claim that our solution is the only one imaginable in the long term, one thing I can guarantee is that those who choose to replace aromatic extracts with heavy naphthenics will be able to use this technology over a long period and that there is no risk that any shortage of products will arise.

Neither are we the only suppliers of naphthenic products in this area, so the scene is set for healthy competition and steady technical development of products for the tyre industry. That's my prediction for 2009 and beyond.

PER DAHLSTEDT
Vice President Nynas Group,
Head of Naphthenics