France's KEM ONE declares force majeure on caustic soda

31 January 2013 12:39  [Source: ICIS news]

LONDON (ICIS)--Producer KEM ONE has declared force majeure on caustic soda following ethylene supply problems, a company source said on Thursday.

The declaration was made on Tuesday and customers have been informed, the source at the French company added.

The move follows problems with ethylene supply after an incident at the Naphtachimie cracker at Lavera, southern France, in December.

“We are touched by the side effects of Naphtachimie and the cracker fire they had,” the source said.

KEM ONE had been waiting for an improvement and for answers but had got to the point where it was necessary to declare force majeure, the source said.

Customers are on allocation and the company is out of the spot market, said the source, adding that this would probably affect spot availability and prices.

KEM ONE’s plant at Fos in southern France has a chlorine capacity of 300,000 tonnes/year, and its unit at Lavera has a chlorine capacity of 341,000 tonnes/year, according to industry body Euro Chlor.


By: Glynn Garlick



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