Recticel is cutting production of insulating products by 15 percent because of a shortage of MDI in the European market.
The company made the announcement on May 12and said it is not expected to increase production of these products again until July 2017.
Recticel said a new force majeure at Covestro, and start-up issues at Huntsman Corp. have both hit MDI production. “As a consequence,” the company said, “MDI is no longer available in sufficient quantities. This shortage is affecting the insulation business of Recticel, leading to a curtailment of its production output.”
The company said the overall raw material situation will lead to a fall in it its first half 2017 financial performance and its earnings before interest and taxation depreciation and amortization is likely to remain below the level of the first half of 2016.
However the company said that it “reiterates the full-year guidance given at its Q1 2017 trading update to grow full year combined earnings.”
Last week companies with operations based in Ireland were reported to be struggling with MDI supply and prices.