Solution to Auto Industry’s Resin Crisis Is Months Away

Carmakers and suppliers don't expect the developing global shortage of PA-12, a nylon used in fuel and brake systems, to improve for at least three months.

Automakers are not yet experiencing a shortage. 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 a critical ingredient in the resin. The chemical maker also produces one-quarter of the world's supply of the resin.

Evonik tells Bloomberg News it is rushing to rebuild the German plant "before winter." A similar factory the company is erecting in Asia won't open until 2014.

No solutions emerged from a meeting in suburban Detroit on Tuesday of about 200 representatives from carmakers and suppliers to discuss the crisis, according to participants. But automakers say they are organizing global teams to monitor the situation.

Analysts note that other resins 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.