Bitumen specialist Nynas has now completed its corporate reorganisation. This follows a creditors meeting during which the previously submitted composition proposal was accepted.
“I am happy to announce this very important step for Nynas and that we are now exiting the reorganisation that has been ongoing since December last year. Together with our loyal customers and suppliers, we will vigorously move forward and continue to develop our business in all our global markets. We are ready to take back lost market share and more,” said Bo Askvik, Nynas president & CEO.
The decision by the District Court of Södertörn will be effective on 21st December. Afterwards, Nynas will no longer be limited by the reorganisation regulations.
During the reorganisation process, extensive work has led to progress. Following ownership changes, Nynas has no longer been subject to US sanction regulations since May. This has meant that the company has been able to contract crude oil deliveries and to continue financing discussions under more favourable terms. During the reorganisation, Nynas has managed to secure good liquidity and cash flow through a significant reduction in overdue customer payments, a granted deferral of tax payments and an agreement on inventory financing.
A key factor is the shift to a new blend of feedstock during the past year. This was necessary due to US sanctions against the export of Venezuelan crude, which used to be a major feedstock. Several new feedstocks have now been approved and processed following a change programme at the refineries and its supply chain. Nynas can now run its refineries with 100 % non-Venezuelan feedstock without affecting product quality. All necessary permits from the authorities needed for running new feedstocks have been secured. The product recipes have been adapted and Nynas has the necessary approvals from its global customer base.
With the new feedstock portfolio and knowledge gained on how to further optimise production at its refineries, the firm says it will increase and optimise the utilisation, as it has the capacity to produce higher volumes.
The continuing restructuring of the refining industry, following the IMO 2020 legislation and stricter performance requirements, will lead to a higher demand for specialised producers both in bitumen and specialty oils. This change is further amplified by the Covid‐19 pandemic that has led to an earlier than expected shutdown of Group I plants. To meet the shortage of Group I oils, Nynas has developed the NYBASE range of products with similar properties and performance. Nynas expects growth also in the bitumen market, primarily from increased spending on road maintenance.
Nynas claims that it is now well positioned to build on its strengths and to embark on the growth path it has planned for.