Dow Ends Force Majeure for Vinyl Acetate Monomer
Dow announced today that it has ended force majeure and related allocation for vinyl acetate monomer (VAM), effective November 1, 2007.
"Barring unforeseen changes in circumstances, our supply has recovered sufficiently and we can again meet our commitments and contractual agreements for VAM as we did before the September 3 force majeure event" said Antulio Borneo, global business director, VAM. "Due to continued tightness of industry supply and high cost of VAM raw materials, we expect that the price increases announced by Dow to facilitate margin recovery during 3rd quarter 2007 will remain firm."
Dow declared force majeure on September 3, 2007, due to essential maintenance of critical plant equipment required at the Texas City, Texas, plant, which is owned by Union Carbide Corporation, a wholly owned subsidiary of Dow. The repairs, which became necessary during a period of low inventory levels at Dow and extremely tight industry supply, required Dow to idle the plant for approximately two weeks during September.
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