LANXESS - Strategic Co-Operation With Oil Producer Nynas

Mumbai, India (PressExposure) August 21, 2009 -- Specialty chemicals group LANXESS AG is to globally forgo the use of DAE oils in the production of synthetic rubbers from December 1, 2009 onwards. To safeguard the supply of alternative products, LANXESS’s Performance Butadiene Rubbers (PBR) business unit will enter into a strategic co-operation with Swedish oil producer Nynas.

Christoph Kalla, head of Marketing of PBR, says: “Our customers know that we are a reliable partner focusing on innovation, quality and guarantee of supply. Thus we need a co-operation partner like Nynas that is globally oriented with a long-term strategy and has the flexibility to make quick decisions.”

The widely used DAE oils are processing oils with a high polycyclic aromatic hydrocarbon (PAH) content. They are considered to have a negative impact on the environment and human health. This is the reason why the use of these processing oils in tires sold in Europe and Japan will be banned by law from 2010 onwards. An environmentally friendly substitute is provided either by TDAE oils or naphthenic oils.

Per Dahlstedt, Vice President of Nynas Group and head of Naphthenics, expects the tire industry to face major structural changes due to the legal directive. “About a million metric tons of aromatic extract will have to be replaced per year. This is a highly demanding challenge for tire producers. Our naphthenic products are excellent alternatives from a technical point of view.”

Nynas globally supplies oil specialties without any restrictions. The products are precisely developed for tire production. From a technical viewpoint they are an equivalent alternative to TDAE oils. Furthermore, Nynas has a team of experts solely concentrating on the development and marketing of oils for the tire industry. Kalla says: “Nynas’ professional know-how in combination with the rubber competence of LANXESS provides tailor-made products and optimal service quality for our customers.”

LANXESS started in 2006 to continuously switch all its rubber producing processes over to environmentally friendly oils at its European production sites, with all of them now being completely free of DAE. At the Brazilian subsidiary LANXESS Elastômeros do Brazil, a logistics network will be established in the near future to ensure a smooth transition to naphthenic oils.

LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in 2008 and currently around 14,800 employees in 21 countries. The company is represented at 44 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Information for editors: 100 years of synthetic rubber – interesting information about the anniversary and the numerous areas of application can be found at http://www.worldrubberday.com/. Information on chemical products from LANXESS can also be found in our Web Magazine at http://webmagazine.lanxess.com/. All LANXESS news releases and accompanying photo, video and audio material can be found on http://press.lanxess.com/.

Forward-Looking Statements This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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Press Release Submitted On: August 21, 2009 at 4:27 am
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