After the completion of a reorganisation process, Nynas, a Swedish manufacturer of speciality naphthenic oils and bitumen products, aims at increasing its market share globally with the continuous focus on its core business. Now the company has a strong balance sheet with a 5-year secured financing.  Bo Askvik, Nynas President & CEO, in an interview with Sharad Matade, said, “We have long-term financing in place, giving us the necessary financing to build volumes and increase sales turnover. With the current financial position, we are now focusing on taking back market share across all our different segments and businesses. The reorganisation also required us to focus on the things we were managing and better control the business.  We are now back in the normalised operational mode that enables us to focus on supply reliability.” He also shared his view on opportunities in new mobility and lowering the supply of Group I base oils.

Last year was a challenging year for Nynas. The company went through a reorganisation process amid pandemic challenges. In January this year, the reorganisation was formally completed. Recalling last year’s challenges, Bo Askvik, Nynas President & CEO, said, “Like many other industries, we were impacted by the slowdown due to the global pandemic. The reorganisation process which was in place all of last year restricted our possibilities of supply somewhat. But we managed to maintain most supplies for our customers and operations during the last year.”

Surprisingly, Nynas managed to do better- than -the industry in 2020. The tyre oil industry, as per a report, had a volume loss of around 14 percent across all segments, whereas the company’s sales were down by six and a half percent in the comparable geographic regions. In the Asian region, Nynas managed to maintain its 2019 sales level, while sales in central Eastern Europe, Middle East, India, and Africa witnessed an uptick.

Askvik said, however, though Nynas may not witness sales of the pre-pandemic levels this year, the company, with its long-term business plans, will continue to focus on its core products to support the growth of the industry.

Nynas AB is a Swedish manufacturer of specialty naphthenic oils and bitumen products. It produces bitumen for paving and industrial applications, transformer oils, base oils, process oils, and tyre and rubber oils. The company has three refineries under its own management – in Nynäshamn and Gothenburg in Sweden, and in Harburg Germany and a bitumen refinery in the UK operated as a 50/50 joint venture between Nynas and Shell, as well as application labs for bitumen, greases, adhesives, rubber and the electrical industry.

In 2017, the US imposed sanctions on Nynas, and additional sanctions in 2019 restricted the company to procure heavy crude oil from Venezuela. Nynas applied for company reorganisation on December 13, 2019, after its banks did not extend the loans. The US lifted sanctions on Nynas AB in May 2020 after the ownership restructuring, which resulted in Petróleos de Venezuela SA’s stake reducing from 50 percent to 15 percent.  An independent Swedish foundation now controls the divested stake.

The reorganisation somehow proved to be a boon for Nynas. The Swedish company is now no longer restricted by the reorganisation regulations and can again hedge oil prices and currency exposures. The company reached a composition agreement with the creditors resulting in a 5-year secured financing and a strong balance sheet. The company has already obtained the necessary permits from the authorities needed for running new feedstocks, which secure supply.

“Now we have a solid balance sheet, much stronger than what Nynas had for many years. We have long-term financing in place, giving us the necessary financing to build volumes and increase sales turnover. With the current financial position, we are now focusing on taking back market share across all our different segments and businesses. The reorganisation also enabled us to focus on the things we were managing and better control the business.  We are now back in the normalised operational mode that enables us to focus on supply reliability. And that’s what customers are looking for. Now we have the same challenges the industry is facing at large, which is COVID-19,” said Askvik.

Despite the challenging time, Nynas remained aggressive on product launches to cater to its customers and markets worldwide. Askvik added, “We launched a series of new products, including the biobased products, and improved our existing products. So, we never lost our focus on developing the business.”

Askvik attributes the successful reorganisation to the company brand, loyal customers, and employees.

Disruptions in shipments is also another major challenge for any company in the current circumstance. Shipment durations have gone up with increasing costs. However, Nynas has always been at the forefront to have a superior supply chain worldwide to serve its customers. Currently, it has 44 depots globally, of which Antwerp, Houston and Singapore are central storage facilities and blending stations. “We have a firm base in the supply chain structure. We focus on how we can be most efficient and maximise shipments to reduce costs per tonne,” said Askvik.

Growing demand for technical higher refined base oils and increasing production cost are accelerating the closure of traditional Group I plants. In 2011, Group I represented about 57% of base oil production capacity, which had dropped to 37% in 2019. However, for tyre  applications, highly refined paraffinic Group II and III oils cannot substitute Group I and it´s derivatives due to limitations in viscosity range and chemical composition differences. “Naphthenic oils provide the solvency and polymer compatibility that group II and group III base oil cannot provide,” explained Askvik. “We always look at bringing value to the tyre and rubber applications”.

The Nynas executive sees that the faster-than-expected adoption of electrification will bring more business opportunities to the company. Though the number of rubber and oil products will reduce in EVs, Nynas bets on its solutions for lubricating greases and metalworking fluids for the different parts in the EVs. “We see a balanced substitution in the electrification of vehicles. Of course, electric vehicles will still be needing tyres for the foreseeable future. Apart from that, we must bear in mind that there are two types of batteries in electric vehicles. You still have a starter battery of the ICE vehicles in the electric vehicles. Where again, our naphthenic oils are an excellent tool to control both, the production as well as the properties of the isolating membranes used in that type of batteries,” said Askvik.

Increasing demand for lower rolling resistance in tyres, which leads to improving fuel economy and reducing CO2 emission, for ICE-driven engine vehicles will extend to electric vehicles as well, said Askvik. “Another element where we have good offering is when it comes to winter performance. That’s a core value of all our products with their performance in lower temperatures.”

To meet the demand for non-mineral oil-based products, Nynas introduced NYTEX BIO 6200, the company’s first tyre and rubber process oil to be produced using renewable feedstock to support its customers reaching their sustainability goals without sacrificing critical technical properties. “When we developed this bio-based tyre oil, we did not want to compromise on the things that Nynas stands for, and that are quality, consistency and performance. We are, I think, one of the few truly global tyre oil suppliers that understand the requirement for consistent quality. NYTEX BIO 6200 is a product that combines all the key benefits of naphthenic oil with low rolling resistance and the winter performance with the bio base component,” explained Askvik.

In the future, Nynas will continue to focus on sustainable products and regulatory demand for safe tyre oils and substitution for Group I oil products. Region-wise, Askvik bets high on the APAC region, a hub of tyre and vehicle manufacturing. “ For us, we will continue to focus on product development to launch new products and increase the performance of our existing products.  We are into niche segment whereas, for our competitors, tyre oils and bitumen are very small part of their business. We offer the customer our technical competence and help them improve their products and we consider this as both challenges and opportunities.” (TT)

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Ride-hailing major Uber has introduced an exclusive offer for its driver partners in London, giving electric vehicle drivers 50 percent off on Enso high-performance, ultra-efficient tyres.

These tyres are specifically engineered for popular electric vehicles like the Tesla Model 3 and Model Y. The driver partners can purchase the Enso tyres via the Uber Marketplace app, giving Uber EV drivers direct access to more affordable EV tyres. 

Enso, an Earthshot Prize Finalist, produces tyres that it claims increase EV range, reduce tyre pollution and last longer than standard alternatives, delivering both environmental and economic benefits to Uber drivers.

This partnership is Uber’s first collaboration with an Earthshot Prize Finalist and is part of a wider partnership with The Earthshot Prize, founded by HRH Prince William. 

Interestingly, London is Uber’s global capital of electrification, with nearly 40 percent of all Uber rides in the city now fully electric. Through its GBP 145 million Clean Air Fund, Uber continues to help drivers switch to EVs, which is now further enhanced by access to specially discounted Enso tyres.

Brit Grant, Head of Electrification, Uber UK, said, “We’re proud to partner with ENSO as part of our ongoing mission to make it as easy and affordable as possible for drivers to go electric in the UK. Uber drivers are already switching to electric vehicles five times faster than the general public, and initiatives like this help us keep up that momentum. By reducing running costs and cutting emissions, this partnership supports our commitment to a cleaner, greener future for cities like London.”

Gunnlaugur Erlendsson, CEO, Enso, said, “Enso is playing its part in reducing costs and environmental impact for Uber drivers today. This has been made possible through our partnership with Uber and The Earthshot Prize; a collaboration that brings together sustainability with scale and commercialisation to deliver real impact. Enso develops A-A rated tyres specifically for EVs like Tesla’s to give drivers more range on a single charge, pay less upfront for their tyres and replace them less often, all of which helps Uber drivers earn more per mile.”

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A new partnership between Pirelli and Aston Martin will integrate Pirelli's pioneering Cyber Tyre technology into the British ultra-luxury brand's future vehicles. This system represents a significant technological advancement as the first of its kind capable of gathering real-time data from sensors embedded directly within the tyre's tread. These sensors feed information to Pirelli's proprietary software and algorithms, which then communicate seamlessly with the vehicle's electronic architecture.

This integration, developed in cooperation with Bosch Engineering, allows the car's main dynamic control systems, including ESP, ABS and traction control, to receive and utilise a comprehensive set of precise tyre data that was previously unavailable. By processing this information, an electronic control unit can optimise the vehicle's dynamics, enhancing both performance and safety. The collaboration underscores a shared commitment to innovation in the ultra-luxury performance sector. The adoption of the Cyber Tyre system marks a notable step forward in Aston Martin's pursuit of class-leading capabilities, leveraging detailed, real-time insights to refine the driving experience.

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The latest data from the German rubber industry highlights severe challenges at the domestic location are compelling companies to fulfil local demand primarily through their foreign production facilities, according to the German Rubber Industry Association (wdk).

A recent business climate index indicates a slight improvement in industry sentiment for the second half of 2025. However, wdk President Michael Klein sharply contradicts this optimism, stating that the data reveals a far grimmer reality. He emphasises that critical performance indicators – including revenue, sales, employment and production – are all showing deeply negative results for the domestic market, underscoring a troubling exodus of manufacturing from its core German base.

Klein has acknowledged the federal government's pledge to launch an ‘autumn of reforms’ as a positive signal. Nevertheless, he insists these measures must urgently deliver tangible relief and cost reductions for industrial companies of all sizes. He argues that what is needed most is a decisive and rapid approach to the promised reduction in bureaucracy, stressing that only verifiable results, not further promises, will count towards improving the competitiveness of the German industrial location.

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Chinese tyre manufacturer Sailun Group has begun construction on a new USD-1-billion tyre facility in Egypt. The plant is situated within the Sokhna integrated industrial zone, part of the Suez Canal Economic Zone (SCZONE). This investment, one of the largest Chinese industrial projects in Egypt, was officially launched at a ceremony attended by SCZONE General Authority Chairperson Walid Gamal El-Din.

The expansive 350,000-square-metre factory will be developed in three phases over a three-year period. The initial phase is scheduled to become operational in 2026, with a planned production capacity of three million passenger car tyres and 600,000 truck and bus tyres annually. This first stage is expected to generate 1,500 new jobs. Upon full completion, the facility's total output is projected to surpass ten million tyres each year.

As a global leader in tyre manufacturing with an extensive international sales network, Sailun Group will utilise this new factory as a strategic hub. The facility is designed to meet rising demand within the local Egyptian market while also creating substantial opportunities for export to regional and international markets.

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