Unsaturated resin: raw material continuous decline UPR 'cold winter' long

German chemicals giant, BASF, has announced its decision to stop Toluene diisocyanate (TDI) production at its Ludwigshafen production facility, due to fall in Water levels in the Rhine river to an “all-time low”.

In a press statement, the company said the despite efforts to shift to alternative means of transport such as pipeline, trucks and rail, “not all raw materials can be supplied” to the site. “Therefore, BASF will have to stop the TDI production in Ludwigshafen,” it said. The restart of production will depend on improved Rhine water level, said BASF, adding it will be in “close contact” with customers.

TDI is a key chemical for production of polyurethane flexible foams and non-foam urethanes.

BASF had announced in August that it had to cut back part of its production due to low Rhine levels, but did not specify which products were affected.

Covestro, another key German chemicals player, had also that its operations were interrupted by the low water levels in Rhine. The company had lowered earnings (EBITDA) to “slightly below” the level of 2017 due to stronger-than-expected competition and the low water level of the Rhine river, which has resulted in production losses and higher logistics costs. The River rhine is a key transport route for the European chemical industry. This is because many of the industry’s plants are located on the river. Low water levels reduce the number of chemical barges that can navigate the river. This means lower production for plants on the river, such as Leverkusen, Dormagen and Ludwigshafen.