Hurricane Rita Impact Still Felt

Weather-induced raw material and energy shortages are still affecting chemical companies, even those far from where Hurricane Rita came ashore last month. Solutia has declared force majeure for adipic acid and other nylon products made at its Pensacola, Fla., and Greenwood, S.C., operations. The firm says outages at suppliers have combined with widespread raw material and utility shortages to force it to allocate nylon products for the time being. To maintain liquidity, the bankrupt company says it will retain a portion of the $97 million it expects to receive from the pending sale of the Astaris phosphates joint venture. Others miles from the storm have also felt its wrath. BASF declared force majeure for styrenic products produced in Altamira, Mexico, and Kraton Polymers says it will have limited ability to supply isoprene-based products from its Belpre, Ohio, plant. Meanwhile, companies in the storm's path are beginning to bring their plants back online. Huntsman Corp. has restarted its Port Neches, Texas, butadiene plant and its Lake Charles, La., titanium dioxide plant. The butadiene unit is running at reduced rates because some customers are still down due to the storm. PPG Industries has restarted its Lake Charles chlor-alkali unit, albeit at operating rates of under 25%. The company says higher rates are contingent on the availability of raw materials as well as customers' ability to process its products.