Drought conditions have led Ineos Styrolution to place force majeure supply limits on resins made at its plant in Altamira, Mexico.
The move affects Terluran-brand ABS, Novodur-brand high-heat ABS and Luran S-brand ASA resins made at the site. In a letter to customers, officials with Ineos Styrolution America in Aurora, Ill., said that because of an ongoing severe drought in the region, the water supply in the local reservoir "has receded to an untenable level."
As a result, the officials said local water supplier COMAPA has reduced the supply of fresh water to all industrial facilities in the area, including the Ineos Styrolution plant.
"We are working collaboratively with the other industry participants, local and federal water authorities to identify … measures to increase the availability and access to fresh water," officials said. "Although we are currently at the start of the rainy season in Altamira, we are unable to estimate when the mitigation measures and rainfall will return the reservoir to sufficient levels to enable our production to restart."
Officials with Ineos Styrolution in the region could not be reached for comment. Almost 65 percent of Mexico was under severe drought conditions in the first half of April, according to a release from Mexican water commission Conagua and Mexico's National Meteorological Service. That number was up more than 7 percent vs. the second half of March.