Rhodia declares FM on supplies of HMDA, downstream products

04 February 2011 09:26  [Source: ICIS news]

LONDON (ICIS)--Rhodia has declared force majeure (FM) on supplies of hexamethylene diamine (HMDA) and downstream products as a result of continued disruption to shipping on the river Rhine in Germany and a supply shortage of adiponitrile (ADN), the company said on Friday.

The French specialty producer said it continued to be affected by a severe disruption of raw materials procurement due to navigation limitations after a barge carrying sulphuric acid capsized on the Rhine on 13 January.

The accident prompted the closure of a 30km (19-mile) stretch of the Rhine between Bingen, near Mainz, and St Goer, south of Koblenz

Downstream shipping on the river restarted on a trial basis on 2 February, almost three weeks after the tanker capsized.

“This, combined with a supply shortage following an equipment breakdown on the ADN production facility in Chalampe (France), leads Rhodia to declare today force majeure on its HMDA and downstream products,” the company said.

It added that resumption of normal polyamide production was expected by the beginning of March.

“Rhodia is investigating all possible alternatives to mitigate the impact caused to its customers,” the company said.

The company also has an FM in place on supplies of adipic acid and related products from its Chalampe plant.

It added that the overall impact on the group's earnings before interest, tax, depreciation and amortisation (EBITDA) was estimated at around €25m ($34m). Most of this would be recorded in the first quarter.

($1 = €0.73)

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By: Hilde Ovrebekk
+44 20 8652 3214



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