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In a letter to customers on May 5, BASF announced a force majeure declaration regarding the supply of polyether polyols and polyurethane systems based on these polyols in the EMEA region.
BASF has been notified by a key propylene oxide supplier, BASF Dow HPPO Production, that it will not be able to deliver the expected amount of propylene oxide to BASF due to events beyond the supplier's control. The reason for this supply shortage is a technical glitch in its propylene oxide production.
As this event was unforeseeable and uncontrollable, the expected supply of propylene oxide in May was affected to such an extent that BASF Polyurethanes Ltd. had to announce in this letter the supply of polyether polyols and the supply of polyether polyols based on these polyether polyols. The supply of alcohol-based polyurethane systems in the European market creates force majeure. As of now, neither existing orders for May nor any orders for May or June can be confirmed. Furthermore, BASF cannot guarantee that confirmed orders will be fulfilled.
The propylene oxide plant jointly established by BASF and Dow was put into operation in 2009 with a production capacity of 300,000 tons/year, making it the largest propylene oxide plant in the world at that time. It uses the HPPO process jointly developed by BASF and Dow. In addition, the plant supplies feedstock for BASF's main polyol production line.
List of affected products:
Lupranol® Balindur® COLO-FAST® CosyPUR® Elastan® Elastocoat® Elastocool® Elastocore® Elastoflex® Elastofoam® Elastolit® Elastopan® Elastopave® Elastopir® Elastopor® Elastoshore® Elastoskin® Elastospray® Elasturan® Polyol mixtures.