Formosa declares force majeure on HDPE HMW from Texas plant

07 May 2013 15:42  [Source: ICIS news]

Formosa declares force majeure on HDPE HMWHOUSTON (ICIS)--US polyethylene (PE) producer Formosa Plastics has declared force majeure on high density polyethylene (HDPE) high molecular weight (HMW) products produced at its Point Comfort, Texas, facility, sources said on Tuesday.

The company experienced a flash fire at its complex on 2 May, which resulted in injuries to several employees and contractors. The fire started at an ethylene purification unit near the HDPE plant, the company said.

The plant had been running before the fire started but has since been shut down and will not restart until an investigation and assessment of the fire is completed, Formosa said.

In a 6 May letter to customers, the company said the unit remains down, which has resulted in the company declaring force majeure on all of its HDPE HMW products.

"The quantity of product that will be allocated is under evaluation and will be communicated as soon as this information is available," the letter states.

The complex has an HDPE capacity of 650,000 tonnes/year. It was not clear how much of that is dedicated to HDPE HMW production.

By: Michelle Klump
+1 713 525 2653

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