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By quickly adapting production, Nynas was able to meet an increase in demand resulting from the Covid-19 pandemic.
NYFLEX® 223 is a hydrotreated and highly refined, high-viscosity naphthenic oil, which is used for hot melt adhesives, as well as plasticiser for TPE and high-end rubber articles. Having experienced global growth in recent years of between 3 % and 10 %, depending on the region, this spring saw a major shift in the trend.
“Global demand for NYFLEX® 223 went up in April by 60 %, and since May it has actually doubled. Forecasts remain high for the rest of the year too. This surge has been driven by higher demand in the first instance for hygiene products, packaging, tapes and labels,” says Rafael Renaudeau, Global Accounts and Business Development Director, Nynas Naphthenics.
There are many reasons for this rapid rise in demand, all of which are linked to the ongoing Covid-19 pandemic. As country after country introduced different levels of quarantine and lockdown, consumers started to hoard items including hygiene products.
“The surge in online retail will also have fuelled the increased need for packaging, tapes and labels,” explains Rafael Renaudeau. “Certain suppliers also suffered operational problems, which put additional pressure on the market for plasticisers such as NYFLEX® 223.”
As a leading supplier of specialty oils, Nynas activated a plan at an early stage in the spring to make sure that its production capacity would not be affected by Covid-19.
“In addition to that plan, we also normally keep a three-month inventory of finished product but this could not suffice for such high demand. Our wide network of sales offices and the close relationships that we have with all customers were instrumental in staying on top of fast-changing numbers.”
Another significant measure was the decision to change the production plans in order to adapt to the increase and accommodate all the orders that were coming in.
“A refinery may not always be the most agile production tool, but we all take great pride in having been able to serve all regular customers and new ones too across the globe,” concludes Rafael Renaudeau.
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