Blast at Evonik Industries Interrupts Automotive Production
The global automotive industry will face interruption in automotive production as there is a “severe” shortage of PA-12 resin used to make fuel and brake components, says a top supplier executive. A blast at a chemical plant at Evonik Industries AG in the city of Marl in Germany’s Ruhr valley that occurred on March 31 resulted in the shortage of the resin.
William Kozyra, chairman of TI Automotive Ltd., wrote in a letter to customers, “The shortage is real and immediate,” It was received by Bloomberg and confirmed by Frank Buscemi, a company spokesman. According to the letter, the explosion killed two, and caused a “complete loss” of making Cyclododecatriene,( CDT)which is a key element of PA-12. Global capacity of CDT is “very limited,”. “The possibility of production interruptions at some of your facilities in the next few weeks is high.“, adds the chairman in the letter.
Kozyra informs in the letter that PA-12 resin is used in most fuel and brake-line coatings, flexible hoses and quick connectors supplied to major automakers including General Motors Co., Ford Motor Co., Toyota Motor Corp. and Volkswagen AG, according to its Web site. Many of the major Automakers report to be aware of the situation and are looking for a solution. Till date there isn’t any interruption in any production as per the spokespersons of the companies.
A emergency summit will be held, according to the letter, on April 17 by automakers and large suppliers to discuss the shortage. The meeting will be moderated by the Automotive Industry Action Group in Southfield, Mich.