Chandra Asri resumes normal PE and PP supply after ending force majeure

Indonesia’s PT Chandra Asri has withdrawn the force majeure on its polyethylene (PE) and polypropylene (PP) supplies, signaling a return to stable operations following earlier disruptions. The company confirmed that production has normalized and efforts are underway to maintain consistent supply for the domestic market.

The force majeure had been declared in early March due to feedstock shortages linked to the Middle East crisis and logistical constraints around the Strait of Hormuz.

To manage the disruption, the company adopted several measures, including sourcing raw materials from multiple global suppliers, increasing procurement from the United States, and optimizing output from its Singapore-based operations. However, these alternatives came with higher costs and longer lead times, with US shipments taking around 50–70 days compared to the usual 15–20 days from the Middle East, along with an added cost of $150–200 per ton.

Going forward, the company plans to prioritize ethylene production from its cracker units for internal use to support PE and PP output. It also highlighted the role of its integrated operations, including support from Singapore, in strengthening supply chain resilience.

The lifting of force majeure marks a significant step toward restoring supply stability for Indonesia’s downstream industries, which were impacted during the disruption period.

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