The Adhesive and Sealant Council (ASC), which represents related manufacturers, suppliers, distributors, and affiliates in North America, has been closely monitoring the unprecedented disruption to the supply of many key intermediates essential to U.S. adhesive manufacturing.
This disruption has been caused by severe weather and subsequent infrastructure failures in mid-February, resulting in chemical facility shutdowns and force majeures in the Texas Gulf Coast.
Of the 5.9 million barrels per day of refining capacity impacted, approximately 4.2 mb/d has or is restarted or is fully back online. Nevertheless, resuming full, pre-event supply and production after such a massive disruption will take time. Supply chains and inventories can take weeks or even months to recover.
“Our member companies severely impacted by this historic crisis continue to service and communicate with their customers the best possible way amid this enormous challenge,” said Bill Allmond, president of ASC. “With a dozen intermediate chemical producers declaring force majeure and approximately 20 additional facilities shutdown or gradually reopening, there is a shortage of key intermediates necessary for adhesive production.”
ASC members and suppliers to the industry report that for many key raw materials and product lines, inventories were already tight with demand exceeding available supplies even prior to the weather event. Additionally, growth in demand on transportation infrastructure, equipment and drivers/manpower, will continue to present challenges to member companies and their supply chain partners as the industry recovers from this event.
ASC urges close collaboration between all parties adversely impacted to minimize additional disruption. Communication from suppliers with their manufacturer customers is critical.”
To assist ASC member companies in need of fulfilling their supply commitments, ASC has created a Crisis Recovery Program to facilitate member-to-member assistance. It strongly encourages its members in a position to assist those in need of key intermediates to visit www.ascouncil.org/page/crisis-recovery-program and volunteer.