INVISTA declares force majeure on BDO and derivatives

14 July 2014 17:48 Source:ICIS News

HOUSTON (ICIS)--US 1,4 butanediol (BDO) producer INVISTA declared force majeure for production of BDO and its derivatives at its La Porte manufacturing facility because one of its primary raw material suppliers is experiencing technical difficulties, market sources said on Monday.

INVISTA notified its customers on Friday that raw material supply shortage has disrupted INVISTA’s global sales and supply chain for poly tetramethylene ether glycol (PTMEG), tetrahydrofuran (THF) and BDO.

The force majeure was effective immediately. INVISTA is implementing a sales allocation to account for the loss of ability to maintain full delivery rates of the mentioned products.

This force majeure event will result in a reduction in the quantities of PTMEG, THF, and BDO that INVISTA La Porte will be able to ship during this period.

The company said it cannot predict the duration or impact of the force majeure, but has said it will strive to restore delivery rates as soon as possible, adding that the curtailments will be minimal.

This force majeure is likely to have a great impact on Q3 BDO contract negotiations, currently ongoing in US markets.

The main producers in North America are BASF, INVISTA, Ashland and Lyondell Chemical.

By George Martin