BASF Implements Force Majeure for Polyamide Supplies

Due to unforeseen complications affecting its polyamide production operations, BASF finds itself unable to fulfill the required volumes of materials necessary to meet market demand. In response to this unavoidable circumstance, BASF has been compelled to declare Force Majeure on its low viscosity polyamide products and implement sales allocation measures in North America, effective immediately. Customers will receive details regarding their allocated volumes from their respective BASF account manager.

At present, the duration of the Force Majeure declaration by BASF and the resulting sales allocation remains uncertain. BASF account managers will maintain communication with customers to provide updates on the status of current and future orders, ensuring transparency as the situation evolves. It is essential to note that sales allocations and delivery schedules are subject to change due to the fluid nature of market conditions.

The company is actively pursuing all reasonable avenues to identify mitigation strategies for the challenges encountered within its supply chain. Polyamide, a critical component utilized in the production of carpet fiber, underscores the significance of BASF's efforts to address these operational disruptions.

A polyamide is a type of polymer characterized by recurring units linked together via amide bonds. These polymeric compounds are found both in natural and synthetic forms. Naturally occurring polyamides include proteins like wool and silk. On the other hand, synthetic polyamides are produced through processes such as step-growth polymerization or solid-phase synthesis, resulting in materials like nylons, aramids, and sodium polyaspartate.

Synthetic polyamides are widely utilized in various industries due to their exceptional durability and strength. They are commonly employed in textiles, automotive manufacturing, carpeting, kitchenware, and sportswear. Notably, the transportation manufacturing sector stands as the primary consumer, accounting for approximately 35% of polyamide (PA) consumption.

BASF SE, originating from its original name Badische Anilin- und Sodafabrik (German for 'Baden Aniline and Soda Factory'), stands as a leading European multinational corporation and the largest chemical producer globally. Headquartered in Ludwigshafen, Germany, BASF operates across a vast international footprint, encompassing subsidiaries and joint ventures in over 80 countries. Its operations span six integrated production sites and 390 additional production facilities situated across Europe, Asia, Australia, the Americas, and Africa.

With a customer base extending to over 190 countries, BASF supplies an extensive range of products to diverse industries. Despite its substantial size and widespread presence, BASF has remained relatively low-profile since discontinuing the manufacture and sale of BASF-branded consumer electronics products in the 1990s.

BASF's product portfolio includes a wide array of chemicals, such as solvents, amines, resins, adhesives, electronic-grade chemicals, industrial gases, basic petrochemicals, and inorganic chemicals like Z-Cote. The pharmaceutical, construction, textile, and automotive sectors constitute the primary customer base for this segment.

Furthermore, BASF is a prominent producer of plastic products, offering high-performance materials in thermoplastics, foams, and urethanes, catering to various industrial applications.