Force Majeure Handcuffs Domestic Polyethylene Manufacturers – Again

genarex Blog

Source: Plastics News – Material Insights: PE makers declare force majeure

This week saw announcements of Force Majeure by Equistar and Chevron-Phillips based on incidents at their Texas feedstock plants. This is hardly the first time such companies have taken actions such as this; you may remember Chevron Phillips making the same announcement in May of last year, for example. LyondellBasell also made the same declaration in February of this year. This followed a February announcement by ExxonMobil surrounding their HDPE supply, and another February announcement by INEOS citing weather as “extenuating circumstances”.

This is not to point the finger at Equistar, Chevron-Phillips, or any of the companies that manufacture polyolefins. By definition, no one has control over Force Majeure situations (often oversimplified as “Acts of God”). These shortcomings can and will happen to everyone. As a nature of the business, Supply Chain Managers need to take careful steps to protect their companies from being too reliant on any one supplier.

One interesting path that some companies have explored includes diversifying their supply base to include biopolymers and bio-based additives. By relying on entirely separate feedstocks from their petrochemical alternatives, these bio-based solutions inherently hedge companies from being as beholden to the standard turmoil which often befalls the petrochemical supply chain.

While trying to manage competitive price points and performance demands of the established polyolefins, Genarex is proud to present BYLOX $ndash; a series of bioadditive products which can be offered in high concentration masterbatches with the resin of your choice, and offer enhanced ductility, very high thermal stability, and a very low color/odor profile relative to competitors in the bioadditive space.