PA-12 Resin Relief Is Months Away

The developing global shortage of PA-12, a nylon resin used in fuel and brake systems, appears unlikely to improve for several months.

Carmakers are not experiencing a shortage yet. But suppliers say disruptions are certain and could be severe.

The crisis began when a fatal explosion at an Evonik Industries facility in Germany on March 31 knocked out the source of about half the world's supply of cyclododecatriene (CTD), a critical ingredient in the resin. Evonik also makes about 25% of the world's PA-12.

The global market for PA-12, including non-automotive applications, has been estimated at about 100,000 tons per year.

Evonik tells Bloomberg News it is rushing to rebuild the German plant "before winter." The company previously announced plans to erect another such factory in Asia, but that facility won't open until 2014. The other PA-12 suppliers Arkema in France, Ems-Chemie Holding in Switzerland and Ube Industries in Japan says they are already running at full capacity.

Carmakers and suppliers met in suburban Detroit on Tuesday to discuss the crisis. Attendees say no solutions emerged. But vehicle producers are organizing global teams to monitor the situation.

Analysts note that other materials might be substituted for PA-12. But it could take months to validate them, especially for use in such safety related systems as fuel and braking.