According to the US "Chemical and Engineering News" reported late last month occurred at a chemical plant explosion in Germany, so this has shown a potential global supply shortage of polyamide (PA) 12 market even worse, make the US auto makers more More and more worried. Last week, the American Automotive Industry Action Group gathered senior executives of relevant automakers in Troy, Michigan to discuss how to deal with the increasingly severe PA12 shortage.
On March 31st, Evonik Industries exploded in a cyclododecatriene (CDT) production plant in Marl, Germany, and caused a fire. CDT is an intermediate in the production of products such as PA12. This accident further exacerbated the already-stressed PA12 market. Evonik Industries is currently investigating the cause of the accident and said that it will take at least three months for the plant to resume production.
Evonik is the only manufacturer in the world to produce PA12 from its own CDT. In addition to its own use, Evonik also supplies CDTs to other PA12 producers, including its main competitor Arkema. Arkema announced on April 6 that due to force majeure, PA12 supply will be interrupted.
Paul Blanchard, a nylon analyst at US consultancy IHS Chemicals, released a report last week that the nylon 12 produced by Evonik and Arkema accounted for about half of the world's total production capacity. In fact, before the fire in the Evonik German factory, the PA12 market has been in short supply.
According to Oriole Baumer, Arkema’s North American polymer business director, Arkema is now trying to get more CDTs from other suppliers. The two manufacturers with smaller CDT production capacity, BASF and INVISTA, have promised to supply Arkema as much as possible. At the same time, Arkema has started to provide rations to its PA12 customers, and its supply to some markets has even been reduced by more than half. Orillia Burmill believes that this situation may continue for six months to nine months.
PA12 is a long-chain PA and is mainly used to produce automotive fuel lines. According to the American Automobile Industry Action Group, representatives of relevant automobile manufacturers gathered at the meeting to brainstorm ideas to expand the inventory and utilization of PA12. They also discussed the possibility of applying new designs and alternative materials. Orielian Baumir said that Arkema’s representatives proposed a plan to replace PA12 with PA1010 and PA1012. In February of this year, Arkema acquired a Chinese company Suzhou Hanpu Polymer Materials Co., Ltd., which produces the aforementioned nylon products. Because the shortage of PA12 supply has continued for some time, Arkema has already begun to develop the application of these materials in the automotive industry.
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