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

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

Image

Total to buy majority stake in Polyblend

November 20, 2014 10:04 am ET

French oil and gas giant Total SA will buy a 68 percent stake in Germany's Polyblend GmbH, a subsidiary of Polymer-Chemie GmbH.    More

Image

Silica can replace plastic microbeads

November 19, 2014 6:00 am ET

As cosmetics and soap makers face pressure to remove plastic microbeads from their products, Evonik Industries touts its new silica-based microbeads...    More

Chase Plastics building new Indiana distribution center

November 18, 2014 11:13 am ET

Resin distributor Chase Plastics will invest $5.4 million to build a new distribution center in South Bend, Ind.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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