-88 560SL strange discovery behind instrument cluster

Hi folks,

took out the instrument cluster, and discovered this strange "coating" of a component next to the heater box, probably an AC valve or similar.
Looks like it has been leaking engine oil  , but it is not sticky. See pictures. Is this normal?

Thanks.

Rgds Erik

Hi Erik,

this is expansion valve of A/C. As it gets pretty cold, it would collect all air humidity outside. That is why it is isolated.

Hi Doctor,

aha, so it is insulation. Thanks.

Rgds Erik