Power Outage Leads to Force Majeure on PE and PP for Formosa
Formosa Plastics Corp. USA has declared force majeure supply limits on polyethylene and polypropylene resins after a power outage June 25 at its production site in Point Comfort, Texas.
The outage occurred at the site's utilities co-generation unit, officials with Livingston, N.J.-based Formosa said in a June 27 letter to customers. Initial investigation suggests that the cause of the outage was inclement weather, they added.
"We are currently evaluating the impact of this event on our production capacity and will provide additional information once we have assessed our ability to supply," officials said.
Formosa's PVC resin production in Point Comfort wasn't affected by the outage.
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