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Resin Shortage Could Disrupt Auto Production Worldwide
A fire at a German chemical plant last month could create a "severe" shortage of a key component in the resin used to make fuel and brake line coatings and flexible hoses, Bloomberg News reports.
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A fire at a German chemical plant last month could create a "severe" shortage of a key component in the resin used to make fuel and brake line coatings and flexible hoses, Bloomberg News reports.
The news service quotes a letter from William Kozyra, chairman of TI Automotive Ltd., to the supplier's customers. Kozyra says there is a "high" likelihood that production at some auto plants will be disrupted in the next few weeks.
Auburn Hills, Mich.-based TI supplies brake and fuel lines, fuel tanks and pumps to most major automakers.
The accident at a facility of Essen, Germany-based Evonik Industries killed two workers and wiped out the company's capacity to make cyclododecatriene, known as CDT, Bloomberg says. Kozyra says global capacity of CDT, which is a key component in fuel system coatings, is "very limited."
Chrysler, Ford, General Motors and Toyota tell Bloomberg they are aware of the problem and are assessing their supply chains to determine whether it will affect their operations. Chrysler says it doesn't expect the resin shortage to interrupt its output.
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