Lasting a lifetime
Hendrik Cosemans, Dubai-based general manager of Sweden's Nynas, on how the company's napthenic oils insulate transformers in the desert
What sort of presence does Nynas have in the Middle East?
With our headquarters in Sweden, Nynas is a company that has had a presence in the Middle East for the last nine years. Since the Dubai office opened, we have grown our business gradually and today the Middle East office is of important size. The next questions are emerging now with the most important one being the feasibility of a local depot. Currently we have a presence at multiple exhibitions and perform seminars at utilities to highlight the importance of the most up-to-date parameters for insulating oil choice, a critical element in the functioning of a transformer.
What level of growth has the company been seeing in the region?
We deal with over 15 countries from our Dubai office and with the majority of our sales in the field of transformer oil, we have grown our Middle East sales office in line with the many projects in the region. Sales have grown by over 200% and today Nynas is an established quality provider with excellent service.
Electrification in the region is still rising, and consumption of energy (for AC) is high. It is also interesting to see that most consumption of energy is by households, whereas in Europe most is consumed by industry. It was, and still is, a huge task to highlight the importance of good quality oil, as ‘buying cheap is paying twice’. Insulating oil is meant to last the lifetime of a transformer and the performance of the oil is a key factor in the performance of the transformer. Nynas recently acquired Shell’s naphthenic oil refinery in Hamburg, Germany. By having two production sites, we are able to deliver the oil to our worldwide customers in any amount required.
In which countries is business most buoyant?
We cannot ignore the significant projects in Saudi and have good relations with SEC who prefer our oils for important projects.In Dubai, we are pleased to have received an award from DEWA as preferred supplier and we continue to deliver our products to clients in Egypt which is expected to grow significantly. In Kuwait, the Ministry of Electricity and Water (MEW) acknowledged that the choice of oil, which represents ca 5-8% of the total cost of a transformer, should not be downgraded in quality for quick-pick of the lowest prices. On the contrary, high quality oil should prevail as the minimum choice, as a reaction to the harsh climate conditions in which transformers operate in the Middle East.So via global OEM’s like ABB, Siemens, Alstom, Hyundai, and local players like Matelec, Al-Ahleia, Eurogulfamong others, we are indirectly active.
What is your most recent majorcontract win in the region?
Nynas often acts via the OEM’s that are in direct contract relations with the utilities and clients, where Nynas sub-delivers the oil to the main contractor. We are thus not active as a direct competitor for the contracts but are instead busy on a daily basis with shipping oil to the various ports or end destinations.We are however looking forward to assist EWA in the raised standard for insulating oil in Bahrain and congratulate OETC in Oman for applying the latest standards comprised in IEC 60296 edition 4 of year 2012.
Tell us about your latest product innovation and why buyers need it?
We have developed a special transformer oil for distribution transformers, as too often these smaller items are being seen as ‘expendable’, and we have noticed that the requirements for these units are often set loweras they are relatively cheap and not seen as a long term investment. We encouragethe use ofhigh standardoil for small units as well sowe developed a new grade which makes us competitive in this market. This allows us to enter markets that before were not possible to enter. However our message remains that quality reduces the total cost of investment, due to the fact that extended life-time drastically improves this ratio.
What sets Nynas apart from its competitors?
Nynas offers you the widest range of transformer oils, developed to handle just about every conceivable climate, design and operating conditions. As the world’s leading supplier of transformer oils for more than 30 years, we know how crucial our products are for reliable performance. That’s why we invest heavily in R&D to produce new grades and refine existing ones. There are more than one million transformers containing Nynas oil. Working with manufacturers has enabled us to develop our products to meet all specifications.