March 19, 2021
Important information – Production Bottlenecks
Production of construction chemicals industry is affected by the pandemic
Our purchase- and procurement department work under intense pressure in order to purchase raw materials – currently an almost impossible mission. Initially confirmed supplies are often being cancelled without any further explanation. The complete construction chemicals industry suffers due to the stagnating supply of raw materials. The Deutsche Bauchemie, the federation of the construction chemicals industry uniting 130 member companies, published an official press release regarding the current situation. Manifold reasons regarding the supply bottleneck are mentioned: Corona-related broken supply chains, decelerated flow of goods due to the Brexit, increased diversion of imports to China, increased demand for pallets and plastic packaging, and many reasons more.
The big news channels report about approximately 150 Force Majeures in the construction chemicals industry until today, while normally 1-10 of these cases are being reported per year. In order to mention just a few Force Majeures:
- Force Majeur BASF n-Butanol: leads to supply shortage of organic dispersions
- Force Majeur BASF 2-Ethyl-Hexyl-Acrylate due to a fire in Ludwigshafen
- Force Majeur of LyondellBasell makes styrene a scarce good
- Force Majeur at EVONIK for DINP
- Force Majeure at COVESTRO for TDI
This supply shortage leads to escalating costs for raw materials. Costs for packaging and transportation increase as well. Due to this situation suppliers decided to increase their prices as well.
For our supply chain this currently means: The situation regarding availability and price setting changes daily. As long as the supply chain is fragmentary, we shall be in explicit close exchange between your purchasing- and our procurement department. Until further notice no serious binding delivery dates can be communicated.
Download here the official press release of Deutsche Bauchemie.