Unlike oil refineries, petrochemical manufacturers do not keep huge inventories of raw materials, and are vulnerable to supply disruptions. Due to supply and power issues post-Hurricane Rita, ethylene and propylene producer Huntsman has invoked a "force majeure" clause in contracts with customers for products manufactured at 8 of its facilities at Texas. This allows the company to escape fines or other penalties because production is limited by circumstances it cannot control.
Huntsman's facilities sustained little structural damage due to Rita six days ago. Despite this, its facilities are finding it tough to operate because of a lack of power, water and sewer service. It's 4 chemical manufacturing facilities in Jefferson County, Texas include one in Port Arthur and three in Port Neches.
Shortage of feedstock has hampered operations at 5 of its other plants on the Gulf Coast - in Conroe, Dayton, Chocolate Bayou and Freeport in Texas, along with Lake Charles, La.
03-Oct-05 
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