FRANKFURT Oct 14 Covestro warned that
production of chemicals for polyurethane foams would continue to
run at reduced levels because outages at a supplier cannot be
overcome before Dec. 11.
The chemicals group, which parent Bayer plans to
divest, initially declared force majeure on Oct. 6, affecting
MDI and TDI precursor chemicals for rigid and soft foams,
suspending its contractual liabilities as the outages lie beyond
"In total we do not expect a negative impact on our
declared business targets for 2016," Covestro said.
The setback adds to a supply squeeze in the market for TDI,
which goes into mattresses and running shoe soles. Competitor
BASF has been struggling to fully ramp up production
at a new TDI facility at its German headquarters in
Ludwigshafen, 11 months after inaugurating the site.
(Reporting by Ludwig Burger; Editing by Maria Sheahan)