Ineos Declares Force Majeure on Some HDPE Grades Produced in US: Letter

Ineos Olefins & Polymers USA this week issued a force majeure declaration on the supply of some grades of high density polyethylene due to April issues with production equipment, according to a company letter obtained Thursday.<br />The force majeure declaration applies to a total of eight HDPE grades, according to a May 1 letter to customers...

Ineos Olefins & Polymers USA this week issued a force majeure declaration on the supply of some grades of high density polyethylene due to April issues with production equipment, according to a company letter obtained Thursday.

The force majeure declaration applies to a total of eight HDPE grades, according to a May 1 letter to customers obtained by S&P Global Platts. The majority of affected grades are for pipe and blowmolding applications, according to company records.

The FM comes after Ineos on April 30 "suffered breakdown and malfunction of equipment affecting production" of the HDPE grades in question, according to the letter. Ineos' only US-based HDPE production is housed at its Battleground Manufacturing site in Alvin, Texas, company records show.

The company did not provide additional details or address a specific timeline for resumption of production, although the letter indicated Ineos was "diligently working to address the problem and to return production capacity to normal levels as quickly and safely as possible."

Ineos can produce around 1.01 million mt/year (2.23 billion lb/year) of HDPE at the Battleground facility, according to company records.

Source: www.platts.com