Bayer MaterialScience declares polyols FM due to France strike

22 March 2011 17:05  [Source: ICIS news]

LONDON (ICIS)--Bayer MaterialScience (BMS) has declared force majeure (FM) on supplies of polyether polyols in Europe, the Middle East and Africa because a labour strike led to the shutdown of a production site at Fos-sur-Mer, France, a company spokesperson said on Tuesday.

As a result of the strike at Fos-sur-Mer, shipments of polyurethane raw materials had to be stopped, BMS spokesperson Ralf Guther said.

The company is currently striving to find alternatives to supply its customers, he added.

It is not yet clear how long the FM on polyols will be in place, as it would depend on the duration of the strike, Guther said, without commenting further by the time of publication.

According to sources in the downstream polyurethane sector, a wage dispute at the Fos-sur-Mer site had affected upstream propylene oxide (PO) production for LyondellBasell, which is thought to be the third-party supplier of raw materials for BMS. This then caused the shutdown of BMS's polyols facility, sources added.

LyondellBasell would not comment on the matter.

Poyols customers said that high-resilience polyols for the downstream automotive sector were most affected by BMS's unplanned outage, with one buyer saying that it would also need to declare FM on its downstream high-resilience foams.

The buyer said that high-resilience polyols had been particularly short before BMS declared FM on supplies of polyether polyols.

This was believed to be a result of recent production problems for another supplier and upcoming plant turnarounds, the buyer added.

For more on Bayer visit ICIS company intelligence

By: Heidi Finch
+44 20 8652 3214

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