LyondellBasell declares force majeure event for US PP

28 February 2014 09:52 Source:ICIS Chemical Business

US polypropylene (PP) producer LyondellBasell has informed customers that it has declared force majeure on all PP manufactured and sourced out of the US, a source said on 14 February.

The force majeure is related to “severe US weather conditions” which have “adversely affected rail transportation and the availability of trucks and drivers”, according to a copy of a 14 February customer letter obtained by ICIS.

“We are currently evaluating the impact of this event on the ability of transportation facilities and carriers to deliver product. As such, you may experience delays in receiving product shipments,” the letter states. “Though the extent of the impact has not yet been fully defined, we are issuing this notification as soon as possible to ensure that you are aware of the situation.”

A company spokesperson could not immediately be reached for comment.

The notice is in addition to a separate notice last week in which the company declared force majeure on PP produced at its Bayport, Texas plant because of mechanical difficulties.

LyondellBasell has a total PP capacity in the US of around 1.18m tonnes/year, including the 720,000 tonne/year plant in Bayport, Texas and a 460,000 tonne/year plant in Lake Charles, Louisiana, according to ICIS plants and projects.

The company last week also declared force majeure for all North American polyethylene, for the same weather and transportation delays.

In Europe, LyondellBasell recently declared force majeure on PP from its 210,000 tonne/year Carrington site in the UK, according to market sources. The company did the same on European butadiene (BD) supplies and placed customers on allocation, sources said.

By Michelle Klump