Chevron Phillips declares force majeure on HDPE

20-Mar-17

Chevron Phillips Chemical Co. has declared force majeure on high density polyethylene production at its plant in Orange, Texas, after a recent power outage, as reported last week by Plastics News Staff. HDPE production there was affected by a widespread power outage that hit Orange and the surrounding area on Jan. 26 and 27. CP Chem's ability to produce HDPE from its gas-phase unit in Orange is currently limited, Polymers Vice President David Morgan said in a March 13 letter to customers.

As a result, CP Chem has made the force majeure move. The firm "is working diligently to minimize the impact of this event on [customers'] business and return to full polyethylene deliveries as soon as possible," Morgan said in the letter. "We are in the process of evaluating the expected duration and will provide [customers] with updates as more information becomes available," he added.