Global automotive industry faces a severe resin shortage

Article by Andrew Christian, on April 16, 2012

TI Automotive Ltd. said that fuel shortage can’t be avoided, especially since there would be a “severe” shortage of a resin within the next few weeks. This would have a heavy impact on the global automotive industry since resin is required for making fuel and brake parts. TI Automotive Ltd chairman William Kozyra said that it’s very likely that there will be production disruptions at several facilities within the next few weeks. Kozyra wrote that the shortage is the result of a blast on March 31 at a plant of chemical maker Evonik Industries AG in the city of Marl in Germany's Ruhr valley.

This is leading to a shortage of a resin called PA-12. Two deaths are related to this explosion, resulting in a “complete loss" of manufacturing Cyclododecatriene (called CDT) and a key element of PA-12. In the letter, Kozyra said that the global capacity of CDT is "very limited.” Resin is a necessary ingredient in using fuel and brake-line coatings, flexible hoses and quick connectors supplied to automakers.

TI Automotive supplies brake and fuel lines, as well as fuel tanks and pumps to all major automakers, such as General Motors Co., Ford Motor Co., Toyota Motor Corp. and Volkswagen AG. Evonik makes its own CDT and is a "key" supplier of the material to other manufacturers of PA-12. Toyota spokesman said that Toyota is “aware” of the situation. Chrysler Group LLC is "monitoring the situation with our supply base," spokeswoman Katie Hepler said in an e-mail. "At this time we do not anticipate any production impacts." [source: Bloomberg]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

You may also be interested

Iti mai recomandam

The process of building a car is a long and tedious task especially for luxury lines. Cars such as Rolls-Royce are known to have been meticulously and painstakingly made compared...
by - July 24, 2016
One of BMW’s most celebrated vehicles is the BMW 3 Series, a compact executive car that has been in the market since 1975. There have been six generations of the...
by - July 22, 2016
This generation of cars have been more like a clash of super powers. Various automakers have been working on developing some of the most powerful cars to compete with the...
by - July 17, 2016
Exactly 50 years after Ford’s first win at the 24 Hours of Le Mans, it has once again bagged the win in this year’s competition. At the 20th hour of...
by - July 15, 2016
Rolls-Royce introduced in London, a vision vehicle that epitomizes the future of bespoke automotive luxury – the new Rolls-Royce Vision Next 100. This new vision vehicle is a personification of...
by - July 12, 2016