12/03/2021
Suppliers and Manufacturers Declare Force Majeure
Earlier this month, we published an update on lead times and pricing. This week, we bring you further information on the topic.
Recently, we learned that as early as July 2020, Dupont* had announced plans to keep its U.S. plants—where polymers and resins are produced—closed, with no clear timeline for returning to full production.
Crastin
On February 22, 2021, Dupont declared force majeure for the global supply of several products, including Crastin. According to its Mobility & Materials department, products most affected include “Zytel” (polyamides) and “HTN” materials, “Crastin” (PBT), “Rynite” (polyester), “Selar” (PA barrier materials), “Minlon” (PA 6.6 GF), and “Pipelon” (PA 6.12). It appears there is little hope of immediate allocation for these products in the coming months, dealing another blow to the already strained polyamide supply chain and related industries.
Force Majeure
On February 23, it became clear that not only Dupont but also other companies had been forced to declare force majeure under their supply agreements. The following companies are now also impacted:
- BASF declared force majeure for nylon products and intermediates manufactured at its Freeport, Texas, facility, as well as for Ultraform® POM Q600 grades.
- Braskem declared force majeure for polypropylene products.
- Celanese declared force majeure for a wide range of products.
- Chevron Phillips declared force majeure for polyethylene products.
- Covestro issued a new force majeure declaration effective February 14 for all polycarbonate products, replacing a previous declaration.
- DuPont declared global force majeure for Zytel® (including Zytel® HTN and Zytel® Specialty Nylons), Crastin®, Rynite®, Selar®, Minlon®, and Pipelon®.
- Flint Hills declared force majeure for polypropylene products due to the storm.
- ExxonMobil began allocating polypropylene products.
- Formosa extended its force majeure declaration to all Formolene® polyolefin products.
- Ineos declared force majeure for polypropylene products due to the storm.
- Ineos Styrolution declared force majeure for Luran® S ASA, Terluran® ABS, and Novodur® high-heat ABS.
- Invista declared force majeure on the supply of PA66 intermediates in the U.S.
- LyondellBasell declared force majeure for polyethylene and polypropylene products due to the storm.
- LyondellBasell partially lifted force majeure for line 5 at its plant in Morris, Illinois, and for LD1, LD2, and PF4 at its plant in Clinton, Iowa.
- Occidental declared force majeure for oil deliveries in the Permian Basin, where it is the second-largest producer.
- OxyChem declared force majeure for PVC products produced in the U.S.
- Sabic declared force majeure for LEXAN™ resins, CYCOLOY™ resins, XENOY™ resins, GELOY™ XP series resins, VALOX™ FR resins, XYLEX™ resins, and ABS products from its Tampico (Mexico) plant.
- Total declared force majeure for polypropylene products manufactured at its La Porte, Texas, plant.
RAST Series
At Lumberg Nederland, the RAST connector series has been particularly impacted. The scale of supply issues with this series is extensive and has had global repercussions. At this time, we have no concrete indications that deliveries will resume in the short term.
*) Dupont is a manufacturer of various base polymers and resins, such as the patented Crastin, which is used as a semi-finished product in the plastic production of several Lumberg connectors, applied in the automotive and industrial automation sectors.