Covestro to declare force majeure on MDI in Germany

Covestro has declared force majeure on supplies of methylene di-para-phenylene isocyanate (MDI) from its production facility at Brunsbuettel, Germany, effective 2 July 2021, according to a spokesperson.

The force majeure followed an “unforeseeable production failure” at the site, the spokesperson says. Covestro cannot guarantee product deliveries will arrive on time during this period, and will have to manage its existing allocations of MDI, the spokesperson adds.

The company is unable to specify how long the force majeure will remain in place at the Brunsbuettel facility, which has two 200,000-metric tons/year production lines. “It is not possible to predict at this stage how long this situation will last, but the company is looking for alternative solutions and will keep its customers informed,” the spokesperson says. “In some cases it will not be able to ensure supplies at all.”

Availability of MDI was expected to increase in the coming months following completion of partial maintenance at one of the two MDI lines at Brunsbuettel in June, according to sources. The force majeure declaration is expected to put a crimp on rising supply, according to James Elliott, associate director/polyurethane feedstocks at IHS Markit. “We had expected them to resume operations and run hard through the summer months to build stock ahead of the planned turnaround at its 200,000-metric tons/year Krefeld site in August/September,” Elliott says.

MDI is consumed mainly for the manufacture of polyurethane foam, as well as being used to produce adhesives, sealants, coatings, and fibers.

OPIS is an IHS Markit company.

Source: Covestro



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