M&G lifts FM at PET plant in Brazil as deliveries return to normal

30 March 2011 19:18  [Source: ICIS news]

HOUSTON (ICIS)--The force majeure (FM) declared on polyethylene terephthalate (PET) supply at Mossi and Ghisolfi’s (M&G) plant in Suape, Pernambuco, Brazil, was lifted on 28 March, a local source said on Wednesday.

Regional sources said PET deliveries were back to normal.

M&G declared FM on PET supply on 16 March at its plant in Suape as a result of the long-lasting blackout of early February that affected the majority of states in Brazil’s northeastern region.

Problems at the M&G plant developed following the blackout.

Initially, the disruptions at the plant were stabilised and it continued to operate.

However, strong fluctuations in the polymerisation system developed later, eventually leading to the stoppage of plant operations, according to the company.

M&G said it was able to supply resin requirements to keep processors running normally, despite reduced availability during the FM.

Coincidentally, the FM declared on supply at the DAK Americas plant in Zarate, Argentina, as a result of a workers’ strike was lifted on the same day, sources in the country said.

The company said resin deliveries were back to normal.

DAK Americas Argentina declared FM on resin deliveries because of the measures taken as of 18 March by members of the Zarate Chemical and Petrochemical Workers Union, the company said in a letter on 21 March to customers.

Those measures did not allow normal operations of DAK’s industrial plant nor the delivery of products to its customers despite DAK’s efforts to resolve the situation, the company said. DAK said it stopped deliveries as of 22 March, since the company could not count on resources required for production.

For more on PET visit ICIS chemical intelligence

By: Ron Coifman
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