Formosa Plastics Warns of Allocation and Delivery Delays After Upstream Force Majeure
In a customer notice dated March 10, the company said disruptions in ethylene and propylene supply are directly affecting its petrochemical supply chain. The shortages have been triggered by upstream feedstock constraints and shipping disruptions linked to the Strait of Hormuz, which have limited the availability of key raw materials.
Formosa Plastics stated that reduced feedstock availability is preventing normal plant operations and could lead to delays in fulfilling contractual deliveries.
To manage the situation, the company said available product volumes will be distributed through a “fair quota supply” mechanism based on current inventory levels. Sales teams are expected to contact customers to revise delivery schedules or discuss alternative supply arrangements.
In the notice, Formosa Plastics also stated that it will temporarily be exempt from liability for delivery delays caused by the force majeure event.
The company added that it will continue monitoring the situation and will provide further updates once supply conditions stabilize.
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