The Dow Chemical Company has declared force majeure regarding its inability to supply certain grades of polypropylene (PP) produced at St. Charles Operations in Hahnville, Lousiana. 30 products are included in this declaration of force majeure accounting for an estimated 37% of Dow's 1.35 billion pound nameplate capacity in North America.
PP production at St. Charles was initially idled as a standard precautionary measure ahead of the Hurricane last weekend. The company has had to declare force majeure due to disruption caused by Katrina to production, power, utilities, raw material supply and transportation services; including truck, rail and marine. Plant equipment suffered no material damage during the storm, but the logistics infrastructure across the region was disrupted and it remains that way today.
St. Charles Operations is owned and operated by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company, and is located near New Orleans.
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