Pittsburgh, Pa.; Fribourg, Switzerland –
NOVA Chemicals Corporation today declared
force majeure effective immediately on supply of expandable poly
styrene (EPS), solid
polystyrene (SPS), and styrene monomer produced in Europe. The company has been forced to take this action due to the failure of several feedstock suppliers to provide the styrene monomer necessary to run its polymer facilities, and supply merchant customers of styrene. Most notable among the issues surrounding styrene monomer supply is the power failure at
Shell Chemical’s Moerdijk, the
Netherlands, plant which caused that company to declare force majeure on March 25, 2002.
NOVA Chemicals stated that its force majeure on EPS, SPS and styrene is in effect until such time as the normal supply of styrene monomer has resumed and manufacturing operations at NOVA Chemicals' European plants have returned to acceptable levels. The company said that it is developing an allocation plan for shipments to customers to address supply restrictions.
“The impacts of low styrene inventories and styrene plant operating problems are rippling through the
supply chain. With a similar situation occurring in the U. S., coupled with increasing global demand, the market for styrene derivatives is very tight,” said Robert Snyder, Vice President,
styrenics Sales and Marketing, Europe.