INEOS declares force majeure on PP at Texas plant

Lane Kelley

19-Jan-2016

HOUSTON (ICIS)–INEOS declared force majeure late last week on co-polymer polypropylene (PP) made at its 440,000 tonnes/year plant in Chocolate Bayou, Texas, according to a customer letter obtained on Tuesday.

The letter said the declaration stemmed from equipment failure at the unit on 27 December, although it did not explain why it took two weeks after the incident to declare force majeure.

“The extent of this event had reduced certain production capacity at the site and as such, INEOS must, as a precautionary measure, declare Force Majeure concerning its supply of impact copolymer polypropylene,” the letter said.

The letter added that INEOS is working to return production capacity to normal levels as soon as possible.

INEOS also declared force majeure on PP in early December at its 231,000 tonnes/year plant in Carson, California, because of a feedstock availability issue. Sources recently said the company has told customers the declaration will be lifted at the end of February.

 

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