UpdateHuntsman joins in list of Ike FMs

18 September 2008 01:21 [Source: ICIS news]

(Adds updates throughout)

HOUSTON (ICIS news)--US producer Huntsman on Wednesday declared force majeure (FM) on propylene oxide (PO) and several other products, joining the growing list of companies that have made such announcements in the wake of Hurricane Ike.

Huntsman also declared force majeure on monopropylene glycol (MPG), ethylene oxide (EO) and ethylene glycol (EG) from its Port Neches facility in Texas.

The Port Neches facility can produce up to 240,000 tonnes/year of PO, 65,000 tonnes/year of MPG, 460,000 tonnes/year of EO and 255,000 tonnes/year of EG, according to global chemical market information service ICIS pricing.

Huntsman also declared force majeure on methyl tertiary butyl ether (MTBE) , ethanolamines, surfactants and other materials made at its Port Neches site.

The declaration also covered alkylates made at Huntsman’s Chocolate Bayou plant; surfactants and other products made at its Dayton site; and specialty amines, carbonates, urethane catalysts and surfactants from its Conroe site. All of the plants are in Texas.

Ike slammed into the Texas coast late on Friday, disrupting chemical operations along much of the region.

Huntsman offered no timetable for plant restarts.

“We are continuing to evaluate Hurricane Ike’s impact on our ability to manufacture and deliver products produced in these facilities, but at this point in time none of the plants are operational, there are extensive power outages as well as raw material and transportation constraints,” said divisional president Don Stanutz.

Earlier on Wednesday, Solvay said its Deer Park plant in Texas survived Hurricane Ike without serious damage, although the storm still led the company to declare force majeure on hydrogen peroxide, the company said on Wednesday.

The area around the 120,000 tonne/year plant was subject to a mandatory evacuation, Solvay said. In addition, a night curfew was still in effect.

Many of Solvay's suppliers and vendors were affected by the hurricane, the company said.

Solvay will enforce a 75% allocation programme for hydrogen peroxide, effective immediately, the company said. The allocation programme could remain in place for at least 60 days.

Solvay said hurricane disruptions could cost the company at least 7-10 days of production at its plant in Deer Park.

Solvay one of several companies to declare force majeure as a result of disruptions caused by Hurricane Ike.

(Additional reporting by Al Greenwood and Brian Ford)

For more on Huntsman’s and Solvay's Deer Park plant, visit ICIS plants and projects
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By: Gene Lockard
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