Dow Declares Force Majeure for Polypropylene at St. Charles Operations

06-Sep-2005

The Dow Chemical Company ("Dow") announced that it has declared force majeure regarding its inability to supply certain polypropylene (PP) products produced at St. Charles Operations in Hahnville, Lousiana. St. Charles Operations is owned and operated by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company, and is located near New Orleans. Dow's declaration is due to disruption of production, power, utilities, raw material supply and transportation services (including truck, rail and marine) resulting from "Hurricane Katrina."

There are approximately 30 products included in this declaration of force majeure accounting for an estimated 37% of Dow's 1.35 billion pound nameplate capacity in North America. Production of PP at St. Charles Operations was initially idled as a standard precautionary measure ahead of the Hurricane last weekend. Plant equipment suffered no material damage during the storm, but the logistics infrastructure across the region was disrupted and it remains that way today.

"We are still assessing the full impact of Hurricane Katrina on St. Charles Operations production, raw material supply, and transportation capabilities," said Todd Prey, North American Product Director for polypropylene. "At this time we are unable to ship polypropylene from St. Charles Operations, and we cannot speculate how long this situation will last. Dow's primary concern is the safety of our employees and the community. We will work to return to normal activities as soon as it is safe and responsible to do so."

https://www.chemeurope.com/en/news/48789/dow-declares-force-majeure-for-polypropylene-at-st-charles-operations.html