WYANDOTTE, Mich. (Oct. 5) — BASF Corp. declared force majeure for all contracts and related agreements pertaining to its Pluracol polyol product line, effective immediately.
In addition, the company implemented a surcharge of 9 cents a pound on the line and, in a separate move, placed a surcharge of 10 cents per pound on sales of Lupranate toluene diisocyanate, both also effective immediately.
All three actions were created by the rise in raw material costs, shortage of raw materials and disruptions in the transportation network caused by hurricanes Katrina and Rita, BASF officials said. Because of that, the company is unable to obtain key raw materials needed to produce polyols and TDI at reasonable prices, the firm said.
In the case of TDI, natural gas and toluene are needed, said Larry Berkowski, director of BASF´s urethane chemicals business in North America. Propylene and propylene oxide are necessary to produce polyols. All four have experienced an "unprecedented" increase in cost, he said.