Harvey aftermath and Hurricane Irma update

September 7, 2017

 

We wanted to update you on the impact to delivery times based on available information regarding the landfall of Hurricane Irma and the residual effects from Hurricane Harvey.

As you may know, Celanese, Lyondell and Kurary declared force majeure for their Vinyl Acetate Monomer production in September with different allocation levels for this month. That means over 75% of the North American VAM production is partially offline and there is no set date yet for when they will return to full operations.

We have assessed our inventory and previously confirmed water based adhesives orders which these outages effect and confirmed that we can fulfill your needs except where it has already been communicated otherwise although many shipments will be delayed.

In addition, Dow and Covestro declared force majeure for the MDI production with no set date for their return to full operations. We reviewed previously confirmed orders for our polyurethanes adhesives and expect to fill 100% although again some shipments may be delayed due to transportation availability.

Finally, Hot Melt adhesives raw materials suppliers in the Southeast US are voluntarily shutting down production to ensure the safety of their employees and facilities as they are in the path of Hurricane Irma. There is no confirmed restart for these shut-downs but we anticipate it will be a minimum of 5-7 days before they return to full capacity.

Our customer service and sales managers are already communicating with anyone whose hot melt adhesives shipments are certain to be impacted by these shutdowns and transportation disruptions from the storms. Where possible, we are taking steps to secure alternate shipping arrangements which may include shipping to you from different warehouses or production sites.

We will assess our manufacturing and supply situation as soon as practicable after Hurricane Irma passes and provide further updates as information is available by mid-next week.  Additionally, as our experience with Hurricane Harvey is showing, transportation is likely to remain disrupted for several days following the storm. We will be in close contact with our logistics service providers to get the most reliable information possible regarding post-storm logistics availability and work to make sure we minimize any impact it has on our business with you.
We would greatly appreciate it if you can provide us with as many of your September and October orders as possible as that will greatly assist us in meeting your demand with the highest possible service and quality.
We greatly appreciate your patience during these difficult times. Please don’t hesitate to contact us if you have any questions or concerns.

 

Best wishes,

Greg Alvarez

IFS Industries