BASF declares force majeure on North America TDI supply

19 May 2011 11:24  [Source: ICIS news]

SINGAPORE (ICIS)--German producer BASF has declared a force majeure on toluene di-isocyanate (TDI) supplies in North America due to severe flooding of the lower Mississippi river, according to a document obtained by ICIS on Thursday.

The flooding disrupted delivery of raw materials to the company’s 160,000 tonne/year TDI plant at Geismar, Louisiana, BASF said in a letter to customers dated 17 May 2011.

The company said that the force majeure on all its TDI products takes effect immediately.

BASF added that it will enforce allocation to customers with a retroactive implementation on 1 May.

The allocation, set in place for an undefined period, will be on “a fair and reasonable basis” and based on customers’ purchases over the past six months from November 2010 to April 2011, the company said in the letter.

By: Chan Jingyi
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