NewsFlashHexion in FM on BPA after Pernis outage

05 May 2006 14:55  [Source: ICIS news]

LONDON (ICIS news)--Hexion has declared force majeure on bisphenol A (BPA) from its 180,000 tonne per year plant at Pernis, Netherlands, a company source said on Friday.

The declaration was made after a power outage on 2 May which resulted in the shutdown of the BPA, epoxy resins and epichlorohydrin (ECH) production units.

While the epoxy resins and epichlorohydrin units came back up during the day, the BPA unit failed to do so and Hexion was oblighed to declare force majeure and place its customers on allocation, the source said.

It was unclear on Friday when the BPA unit was expected to come back up.

Some industry sources said that although the epoxy resins unit came back up after the incident, the current tight market would be impacted as Hexion is a heavily integrated producer of epoxy resins.

Although May BPA contract prices were not expected to be affected by the Pernis force majeure, the market is expected to tighten and move away from the persistent oversupply situation.

By: Giovanni Coiro
+44 20 8652 3214

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