Formosa declares force majeure for PP in Point Comfort, Texas

By Frank Esposito
Senior Staff Reporter

Published: June 12, 2013 12:35 pm ET
Updated: June 12, 2013 12:37 pm ET

Related to this story

Topics Materials, Resin Pricing, Materials Suppliers

Formosa Plastics Corp. USA has declared force majeure for polypropylene resin at its plant in Point Comfort, Texas — while already operating under similar conditions for high density polyethylene resin at the site.

In a June 11 letter to customers, Formosa polyolefins vice president and general manager Ken Mounger said that the firm’s PP units in Point Comfort “have experienced unplanned outages” and was declaring force majeure as a result.

“The quantity of [PP] product that will be allocated is under evaluation, and will be communicated as soon as this information is available,” Mounger said in the letter.

Formosa spokesman Steve Rice said in a June 12 phone interview that no date has been set for a full re-start of PP production at the site. He declined to provide details as to the reasons for the outages.

The outage comes at a time when U.S./Canadian PP demand is far from robust. Through April, regional PP sales were down more than 5 percent, according to the American Chemistry Council in Washington. A domestic drop of almost 4 percent was worsened by a drop of more than 37 percent in export sales in that four-month period.

Livingston, N.J.-based Formosa already was operating under force majeure for HDPE in Point Comfort after a May 2 fire at the site. Several workers were injured in that incident, which resulted in all three of the firm’s HDPE production lines being closed.

Two of the three HDPE lines were up and running by May 15, while officials earlier said the third line — which makes high molecular-weight bimodal grades of Formosa's Formolene-brand HDPE — would be back in production in late June. Rice confirmed June 12 that the site’s HDPE production levels remain below where they were before the fire.

North American PE supply also has been impacted by force majeure conditions for the material at a plant operated by Chevron Phillips Chemical Co. in Baytown, Texas. The firm — based in The Woodlands, Texas — declared force majeure after a minor emissions event at the site on May 9 and 10.


Comments

Formosa declares force majeure for PP in Point Comfort, Texas

By Frank Esposito
Senior Staff Reporter

Published: June 12, 2013 12:35 pm ET
Updated: June 12, 2013 12:37 pm ET

Post Your Comments


Back to story


More stories

Image

Report: Lanxess may cut 1,200 jobs

October 31, 2014 9:40 am ET

German chemicals company Lanxess AG may cut up to 1,200 jobs, around 7 percent of its workforce, as part of a group-wide overhaul to counter...    More

Image

PP prices rise, solid PS, PET drop

October 30, 2014 1:15 pm ET

North American polypropylene resin prices surged again in October, while regional prices for solid polystyrene and PET bottle resin continued their...    More

Image

Italian compounder opening first US plant

October 30, 2014 9:45 am ET

The song of the South has led Italian compounder So.F.Ter Group to open its first plant in the United States in Lebanon, Tenn.    More

Image

Ineos closing Barex plant, exiting business

October 29, 2014 3:58 pm ET

Materials maker Ineos Group is closing its only global Barex-brand polyacrylonitrile (PAN) resin plant in Lima, Ohio. Ineos – based in Rolle,...    More

Image

DSM picks Augusta, Ga., for nylon plant

October 29, 2014 11:49 am ET

Materials firm Royal DSM NV has chosen Augusta, Ga., as the site of its new North American nylon resin plant.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events