Formosa Petrochemical Declares Force Majeure at Olefins Division Amid Middle East Feedstock Disruptions

Taiwan’s Formosa Petrochemical Corporation (FPCC) has declared force majeure at its Olefins Division after severe disruptions in raw material procurement linked to escalating geopolitical tensions in the Middle East.

In an official notice dated March 9, 2026, the company said the situation was triggered by the recent escalation in the region, particularly following the airstrikes initiated on February 28, 2026, which have disrupted critical shipping routes.

According to the notice, the disruption in the Strait of Hormuz has caused significant delays in the delivery of naphtha, FPCC’s primary feedstock that was scheduled to arrive in March. Despite efforts to secure alternative supplies and maintain normal operations, the shortage of feedstock has made the situation unavoidable.

As a result, FPCC’s Olefins Division will operate all production facilities at minimum capacity starting March 9, 2026.

The company stated that the circumstances are beyond its reasonable control and have materially affected its ability to fulfill contractual and spot supply obligations. FPCC added that it is taking all possible measures to mitigate the impact, stabilize operations, and allocate available inventory and production output in a fair and reasonable manner.

The company also apologized for any inconvenience caused to its customers and business partners, emphasizing that it remains committed to restoring normal operations as soon as possible while maintaining cooperation during this challenging period.

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