Shortage of raw materials affects global adhesives manufacturer Jowat
News General news
Plant shutdowns in Europe and the U.S., as well as severely limited ocean and overland freight capacity, are impacting the availability of raw materials for adhesive manufacturing.
With demand for adhesives currently good, the Detmold-based adhesives manufacturer is facing supply shortages of key raw materials and adhesive precursors as a result of plant shutdowns at some European and US chemical manufacturers.
Even before the plant shutdowns, the availability of key raw materials for adhesives production was limited. The onset of winter in the southern states of the USA has further exacerbated the situation, leading to the loss of a large proportion of US refinery capacity and chemical production there. As a result, the supply chains of the Detmold-based company's international sites have also been affected.
According to estimates by the US Adhesives Association (ASC), it will take weeks or even months before the supply chains in and out of the USA are restored.
The situation is further complicated by the current long transportation lead times and limited availability of sea and land freight capacity. In the global raw materials market, this also has a significant impact on the current supply situation in Europe and Asia.
Klaus Kullmann, CEO of Jowat SE: "We regret the bottleneck situation and are doing our best to remain a reliable supplier and partner for our customers during this time. Our global orientation helps us to act flexibly and to keep the impact of supply bottlenecks as low as possible. However, in this unprecedented situation, supply shortages are almost impossible to avoid."
